Australian Broker Call
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September 19, 2023
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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.
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Overnight Price: $5.97
Macquarie rates ALX as Neutral (3) -
The French government's Council of State view on toll road taxes is "on balance" a net positive for Atlas Arteria, Macquarie asserts.
The view suggests only a broad concession tax may work and, even if this is disproportionately impacting toll roads, the broker points out there will be a potential point of appeal.
The quantum of the tax impact remains unclear. The other headwind for the company are interest rates, with Macquarie noting French and US discount rates have increased by 25 basis points and 60 basis points, respectively, which lowers the valuation by -$0.40.
Neutral rating retained. Target is reduced to $6.15 from $6.55.
Target price is $6.15 Current Price is $5.97 Difference: $0.18
If ALX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.39, suggesting upside of 8.6% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 40.00 cents and EPS of 64.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 49.2, implying annual growth of 121.3%. Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 12.0. |
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 40.00 cents and EPS of 71.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.6, implying annual growth of 6.9%. Current consensus DPS estimate is 41.0, implying a prospective dividend yield of 7.0%. Current consensus EPS estimate suggests the PER is 11.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $56.59
Morgan Stanley rates ASX as Underweight (5) -
Morgan Stanley tracks September 2023 interest rate futures, a seasonally high month, and notes volumes are down -4.5% year-on-year.
Assuming similar growth in all futures, volumes appear to be tracking 8% ahead in FY24 to date, which is slightly ahead of the broker's 7% forecast for the year.
SPI200 index futures volumes are materially lower in September, down -60%. Morgan Stanley retains an Underweight rating for ASX with a $53.50 target. Industry view: In-Line.
Target price is $53.50 Current Price is $56.59 Difference: minus $3.09 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $62.88, suggesting upside of 11.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Morgan Stanley forecasts a full year FY24 dividend of 212.50 cents and EPS of 250.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 251.8, implying annual growth of 53.6%. Current consensus DPS estimate is 222.0, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 22.5. |
Forecast for FY25:
Morgan Stanley forecasts a full year FY25 dividend of 210.40 cents and EPS of 248.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 259.9, implying annual growth of 3.2%. Current consensus DPS estimate is 220.6, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.8. |
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.19
Bell Potter rates BDM as Initiation of coverage with Buy (1) -
Bell Potter initiates coverage on Burgundy Diamond Mines with a Buy rating and $0.50 target. The core asset is the Ekati mine located in the Northwest Territories of Canada. The mine was previously developed by BHP Group ((BHP)) and commenced production in 1998.
The broker believes there is material potential to de-risk and extend the current mine life with the new open pit footprint potentially expanding to increase output.
The mine is a highly strategic asset within the thriving global luxury goods value chain with the broker noting Russia and Africa currently account for around 80% of global diamond supply.
Target price is $0.50 Current Price is $0.19 Difference: $0.315
If BDM meets the Bell Potter target it will return approximately 170% (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 16.70 cents. |
Forecast for FY25:
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of 20.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $18.82
Citi rates BSL as Neutral (3) -
US automotive workers have taken strike action and hot rolled coil pricing has contracted as a result, Citi observes. While the Australian market is holding up, BlueScope Steel's North Star profits will be under pressure at lower spot levels with the spread now at US$345/t.
Guidance for the first half assumed a spread of around US$485/t. US prime scrap has fallen further, to US$406/t, which may help to offset to some degree the lower HRC pricing.
First half EBIT guidance for North Star appears to be at risk, Citi concludes. Neutral rating and $23.50 target maintained.
Target price is $23.50 Current Price is $18.82 Difference: $4.68
If BSL meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $21.36, suggesting upside of 10.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 50.00 cents and EPS of 188.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 197.4, implying annual growth of -9.2%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 9.8. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 50.00 cents and EPS of 205.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 192.8, implying annual growth of -2.3%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 10.0. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Citi rates BWP as Sell (5) -
Citi welcomes the incoming managing director of BWP Trust, Mark Scatena, noting he has a strong knowledge of Bunnings and other Wesfarmers companies.
The broker envisages potential for increased acquisition activity from BWP Trust as valuations become more attractive. The company's access to capital is robust and a defensive balance sheet positions it for execution on real estate acquisitions and developments in the future.
Sell rating. Target is $3.40.
Target price is $3.40 Current Price is $3.69 Difference: minus $0.29 (current price is over target).
If BWP meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.59, suggesting downside of -1.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 18.30 cents and EPS of 18.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.0, implying annual growth of 215.2%. Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 20.2. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 18.40 cents and EPS of 18.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 18.3, implying annual growth of 1.7%. Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 19.9. |
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.84
Ord Minnett rates CGC as Hold (3) -
Paine Schwartz Partners has lowered its indicative offer to acquire Costa Group by -9% to $3.20 a share, yet Ord Minnett continues to believe the deal will likely proceed.
The premium is reduced but the offer is still relatively attractive on valuation grounds and a 22% premium to the closing price prior to the proposal.
The broker was not surprised by the lowered bid, given the more challenging outlook in the short term, with the overhang from wet weather conditions likely to weigh on citrus volumes in the second half and amid softer tomato demand.
Hold rating retained. Target is $3.18.
Target price is $3.18 Current Price is $2.84 Difference: $0.34
If CGC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 6.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 9.00 cents and EPS of 6.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -24.0%. Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.7%. Current consensus EPS estimate suggests the PER is 52.0. |
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 9.00 cents and EPS of 11.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.6, implying annual growth of 110.9%. Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 24.7. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DMP DOMINO'S PIZZA ENTERPRISES LIMITED
Food, Beverages & Tobacco
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Overnight Price: $52.90
Citi rates DMP as Neutral (3) -
Citi envisages potential for Domino's Pizza Enterprises to reveal positive momentum at its AGM update in November. Same-store sales improved in the first seven weeks of FY24 after a flat second half, despite more challenging comparables.
The broker suspects there is greater risk to the longer-term roll-out of stores and retains a Neutral rating, needing to see improvements in franchise profitability to become more positive. Target is $57.95.
Target price is $57.95 Current Price is $52.90 Difference: $5.05
If DMP meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $57.33, suggesting upside of 8.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 106.30 cents and EPS of 169.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 174.6, implying annual growth of 278.7%. Current consensus DPS estimate is 129.7, implying a prospective dividend yield of 2.5%. Current consensus EPS estimate suggests the PER is 30.2. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 151.20 cents and EPS of 231.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 218.0, implying annual growth of 24.9%. Current consensus DPS estimate is 160.8, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 24.2. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.65
Citi rates EVN as Neutral (3) -
After a visit to Evolution Mining's Red Lake mine, Citi observes how much the company had underestimated the task at hand. It appears there is a lot of work to do before the operation can be turned around.
While not downplaying the effort that has already gone into this, the broker highlights the "buy-in" of the local workforce has improved the prospect for the mine.
Red Lake owes the company $1bn yet Citi acknowledges there is no other stock in its coverage that has provided the level of access and disclosures, which is to the company's credit. Neutral rating and $3.60 target.
Target price is $3.60 Current Price is $3.65 Difference: minus $0.05 (current price is over target).
If EVN meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.48, suggesting downside of -6.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 12.00 cents and EPS of 25.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.5, implying annual growth of 219.9%. Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 13.00 cents and EPS of 29.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.4, implying annual growth of -28.4%. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 18.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates EVN as Underperform (5) -
Macquarie made a site visit to Evolution Mining's Red Lake and assesses past investment is starting to gain traction. The performance of the mine had been underwhelming for the broker but appears to be getting better.
The problem is less ore is being mined than can fill two process plants yet the company was keen to highlight the progress made to date that should mean a more consistent performance in the future.
Macquarie forecasts Red Lake to incrementally increase output to average 200,000 ozpa in FY24-30 before lifting to 247,000 ozpa. Underperform retained. Target is $3.50, raised from $3.40.
Target price is $3.50 Current Price is $3.65 Difference: minus $0.15 (current price is over target).
If EVN meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.48, suggesting downside of -6.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 6.00 cents and EPS of 31.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 28.5, implying annual growth of 219.9%. Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.1%. Current consensus EPS estimate suggests the PER is 13.0. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 11.00 cents and EPS of 21.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.4, implying annual growth of -28.4%. Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 2.8%. Current consensus EPS estimate suggests the PER is 18.2. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FPH FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
Medical Equipment & Devices
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Overnight Price: $20.06
Citi rates FPH as Neutral (3) -
Fisher & Paykel Healthcare provided an investor briefing in California and Mexico for its manufacturing facilities. Citi now understands the recovery in gross margins to 65% will be gradual but this is a clear focus of all levels of management.
The broker reduces FY24-26 estimates for EPS by -5-7% and moves the target to NZ$22.75, implying a PE for FY26 of 33.5x. Citi remains cautious about the outlook for the homecare division ahead of trial results for GLP-1 in OSA. Neutral retained.
Current Price is $20.06. Target price not assessed.
Current consensus price target is $21.00, suggesting upside of 4.0% (ex-dividends)
Forecast for FY24:
Current consensus EPS estimate is 39.8, implying annual growth of N/A. Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 1.7%. Current consensus EPS estimate suggests the PER is 50.8. |
Forecast for FY25:
Current consensus EPS estimate is 50.4, implying annual growth of 26.6%. Current consensus DPS estimate is 37.1, implying a prospective dividend yield of 1.8%. Current consensus EPS estimate suggests the PER is 40.1. |
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
Overnight Price: $7.03
Ord Minnett rates GNC as Hold (3) -
Ord Minnett observes three consecutive bumper crops and stronger demand for Australian grain has allowed GrainCorp to command high supply-chain margins.
Global supply shortages have lifted global prices and encouraged exports, allowing the company to maximise capacity in its processing infrastructure.
The broker warns back-to-back bumper harvests are not typical, particularly in combination with higher grain prices globally, and therefore profitability should likely normalise over coming years.
The Australian crop report has forecast the 2024 east coast winter grain production will be around 21m tonnes, a -30% decline from 2023. The broker retains a Hold rating and $7.20 target.
Target price is $7.20 Current Price is $7.03 Difference: $0.17
If GNC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $8.83, suggesting upside of 25.0% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 48.00 cents and EPS of 110.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 112.4, implying annual growth of -33.0%. Current consensus DPS estimate is 47.6, implying a prospective dividend yield of 6.7%. Current consensus EPS estimate suggests the PER is 6.3. |
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 30.00 cents and EPS of 52.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.2, implying annual growth of -53.6%. Current consensus DPS estimate is 32.0, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.48
Citi rates IMD as Neutral (3) -
Citi observes drilling activity appears to have suffered a setback in August, falling to the second lowest level in 2023 to date. The broker expects volatility will linger, resulting in subdued improvements in instrumentation volumes.
A substantial recovery in exploration is seen as increasingly unlikely in the near term and the risk for Imdex is considered to the downside at this point in time.
Declines in exploration in August have been attributed to lower gold and copper projects reported during the month.
While solid commodity prices should be conducive to exploration-related capital raisings, the broker points out the general uncertainty is discouraging junior players from deploying capital in a meaningful way. Neutral rating maintained. Target is $1.60.
Target price is $1.60 Current Price is $1.48 Difference: $0.125
If IMD meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.86, suggesting upside of 25.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 3.00 cents and EPS of 10.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.1, implying annual growth of 39.6%. Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 13.3. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 4.00 cents and EPS of 11.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 12.3, implying annual growth of 10.8%. Current consensus DPS estimate is 3.8, implying a prospective dividend yield of 2.6%. Current consensus EPS estimate suggests the PER is 12.0. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PMV PREMIER INVESTMENTS LIMITED
Apparel & Footwear
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Overnight Price: $25.49
Morgan Stanley rates PMV as Overweight (1) -
Morgan Stanley continues to evaluate the outlook for Premier Investments, noting margin downside is a key concern for investors. The company achieved retail EBIT margins of 21.7% in FY23, up 8.5 percentage points compared with FY19.
The broker is increasingly confident margins can be sustained because rent/sales are consistent with the industry and online sales doubled to $300m in FY23.
The broker believes any temporary factors should have now unwound, noting the company has held its margins at 21-22% for three years. Target is $32.25. Overweight rating retained. Industry view: In line.
Target price is $32.25 Current Price is $25.49 Difference: $6.76
If PMV meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $24.82, suggesting downside of -1.8% (ex-dividends)
The company's fiscal year ends in July.
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 133.10 cents and EPS of 167.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 173.4, implying annual growth of -3.3%. Current consensus DPS estimate is 127.2, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY24:
Morgan Stanley forecasts a full year FY24 dividend of 93.50 cents and EPS of 155.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 145.1, implying annual growth of -16.3%. Current consensus DPS estimate is 100.0, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 17.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.76
Macquarie rates PRU as Outperform (1) -
Perseus Mining has extended the mine life for Yaoure to at least 2035. Production and costs are largely in line with Macquarie's expectations while capital expenditure is higher.
The mine plan incorporates an underground operation below the CMA open pit for the first time as well as the existing CMA open pit and an expanded Yaoure open pit.
The broker updates forecasts to align with the new plan, estimating total gold production of 1.97m ozpa, with an average life-of-mine AISC of US$1133/oz. These two numbers are 2% above the company's guidance. Outperform retained. Target is reduced -4% to $2.60.
Target price is $2.60 Current Price is $1.76 Difference: $0.845
If PRU meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 3.50 cents and EPS of 23.30 cents. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 3.60 cents and EPS of 26.00 cents. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Bell Potter rates VIT as Buy (1) -
Bell Potter notes prescribing activity has surged in August. SAS-B applications, mostly used by new prescribers of medicinal cannabis, in August totalled 15,400 applications, significantly ahead of previous monthly averages.
The Authorised Prescriber path, used by clinicians with greater prescribing experience, was also significantly higher during the month, at 2300 applications.
While there are an increasing number of smaller distributors in the segment, the broker notes Vitura Health has significant market share and is well-positioned to capture industry growth.
The broader integration of CanView 2.0 among prescribers will also be critical to sustaining growth in FY24. Buy rating and $0.70 target unchanged.
Target price is $0.70 Current Price is $0.31 Difference: $0.39
If VIT meets the Bell Potter target it will return approximately 126% (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 1.00 cents and EPS of 3.00 cents. |
Forecast for FY25:
Bell Potter forecasts a full year FY25 dividend of 1.00 cents and EPS of 3.60 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $6.61
UBS rates WHC as Neutral (3) -
UBS explores the funding options and potential for the Blackwater and Daunia mines, given Whitehaven Coal has confirmed it is participating in BHP Group's ((BHP)) divestment process for these assets.
The broker assumes the company would partner with a customer/trading house that would fund around 25% of a base case valuation of US$3.3bn for both assets.
UBS estimates Whitehaven Coal could potentially fund 50-70% of the acquisition in cash, requiring US$800m-1.3bn in debt with gearing at around 18-30%.
The assets would lift the company's revenue share for metallurgical coal to around 60% from less than 20%. Neutral rating retained. Target is $6.30.
Target price is $6.30 Current Price is $6.61 Difference: minus $0.31 (current price is over target).
If WHC meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $7.12, suggesting upside of 6.4% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
UBS forecasts a full year FY24 EPS of 75.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 83.8, implying annual growth of -72.8%. Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 4.6%. Current consensus EPS estimate suggests the PER is 8.0. |
Forecast for FY25:
UBS forecasts a full year FY25 EPS of 90.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 78.2, implying annual growth of -6.7%. Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 4.4%. Current consensus EPS estimate suggests the PER is 8.6. |
Market Sentiment: 0.2
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 | |
ALX | Atlas Arteria | $5.89 | Macquarie | 6.15 | 6.55 | -6.11% |
CGC | Costa Group | $2.86 | Ord Minnett | 3.18 | 3.40 | -6.47% |
EVN | Evolution Mining | $3.71 | Macquarie | 3.50 | 3.40 | 2.94% |
IMD | Imdex | $1.48 | Citi | 1.60 | 2.00 | -20.00% |
PRU | Perseus Mining | $1.78 | Macquarie | 2.60 | 2.70 | -3.70% |
Summaries
ALX | Atlas Arteria | Neutral - Macquarie | Overnight Price $5.97 |
ASX | ASX | Underweight - Morgan Stanley | Overnight Price $56.59 |
BDM | Burgundy Diamond Mines | Initiation of coverage with Buy - Bell Potter | Overnight Price $0.19 |
BSL | BlueScope Steel | Neutral - Citi | Overnight Price $18.82 |
BWP | BWP Trust | Sell - Citi | Overnight Price $3.69 |
CGC | Costa Group | Hold - Ord Minnett | Overnight Price $2.84 |
DMP | Domino's Pizza Enterprises | Neutral - Citi | Overnight Price $52.90 |
EVN | Evolution Mining | Neutral - Citi | Overnight Price $3.65 |
Underperform - Macquarie | Overnight Price $3.65 | ||
FPH | Fisher & Paykel Healthcare | Neutral - Citi | Overnight Price $20.06 |
GNC | GrainCorp | Hold - Ord Minnett | Overnight Price $7.03 |
IMD | Imdex | Neutral - Citi | Overnight Price $1.48 |
PMV | Premier Investments | Overweight - Morgan Stanley | Overnight Price $25.49 |
PRU | Perseus Mining | Outperform - Macquarie | Overnight Price $1.76 |
VIT | Vitura Health | Buy - Bell Potter | Overnight Price $0.31 |
WHC | Whitehaven Coal | Neutral - UBS | Overnight Price $6.61 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 4 |
3. Hold | 9 |
5. Sell | 3 |
Tuesday 19 September 2023
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