Australian Broker Call *Extra* Edition – Mar 10, 2023

Daily Market Reports | Mar 10 2023

An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, 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 of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

ACW   AHL   AHX   AIM   AIS   AKE (2)   ALC   ALG   ALK   AOF   APM   APX (2)   ATA   AVH   AX1   B4P   BRI   BUB   CCX (3)   CGC   CLG   COE   CUP   CXO (2)   CYG   DDH   DRO   DSK   DTC   ECF   EML   ENN   FCL (2)   FSG   GDC   GDG   GTK   HLS   IFM   IPG   JAN   KED   KGN   LFG   LYC   MCR   MGH   MHJ   MIN   MYX   PBP   PDN (2)   PLY   PPG   PPS   REG   RMC   RPL   SHV   SND   TLX   TPG   WDS   WGX   WPR   XRF   XTE  

TLX    TELIX PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $7.21

Wilsons rates ((TLX)) as Overweight (1) -

Wilsons now forecasts a tripling of sales to more than $200m for TLX250-CDx's first full year, which lifts FY25 forecasts and the target price to $9.72 from $8.13. The imaging agent can accurately identify clear cell renal cell carcinoma.

The increased sales forecast is based upon 20% total addressable market (TAM) penetration for renal cancer assessment.

The broker points out the un-risked valuation for Telix Pharmaceuticals is $15/share with around 80% of this potential upside from the achievement of therapy development milestones.

The company reported a FY22 loss of -$104m compared to the analyst's forecast for -$78m due to lower other income and a higher tax expense. No guidance was provided for FY23.

The Overweight rating is maintained.

This report was published on February 28, 2023.

Target price is $9.72 Current Price is $7.21 Difference: $2.51
If TLX meets the Wilsons target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY23:

Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of 2.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 343.33.

Forecast for FY24:

Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.83.

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

TPG    TPG TELECOM LIMITED

Telecommunication - Overnight Price: $5.14

Goldman Sachs rates ((TPG)) as Neutral (3) -

Sales, earnings, dividends and profits for TPG Telecom in FY22 were largely in line with Goldman Sachs expectations.

A return to earnings growth in the 2H was a highlight for the analyst. Also, it's thought earnings guidance indicates sustainable growth.

The broker points out TPG is benefiting from a return of mobile subscriber growth, price increases and a recovery in international roaming.

However, management expects a circa -$100m increase in interest expense in FY23, which offsets the majority of forecast earnings growth, explains Goldman Sachs.

The target falls by -4% to $5.30. Neutral.

This report was published on February 28, 2023.

Target price is $5.30 Current Price is $5.14 Difference: $0.16
If TPG meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $6.23, suggesting upside of 21.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 18.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.71.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 17.1, implying annual growth of -38.1%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 30.1.

Forecast for FY24:

Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 17.00 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.24.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 22.0, implying annual growth of 28.7%.
Current consensus DPS estimate is 19.7, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 23.4.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WDS    WOODSIDE ENERGY GROUP LIMITED

NatGas - Overnight Price: $35.30

Jarden rates ((WDS)) as Underweight (4) -

Woodside Energy's 2022 full-year result met Jarden's forecasts (net profit after tax forecasts missed consensus by -6%).

The broker believes consensus EPS and DPS forecasts are too optimistic and have not yet factored in softening commodity prices and a change in the company's depreciation policy.

Woodside Energy's balance sheet simply glowed, gearing sitting at 1.6%, with funds likely to be allocated to growth programs and dividends in 2023, says Jarden, who also expects several asset sales.

Underweight rating and $33.60 target price retained.

This report was published on February 27, 2023.

Target price is $33.60 Current Price is $35.30 Difference: minus $1.7 (current price is over target).
If WDS meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $38.23, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 205.92 cents and EPS of 258.41 cents.
At the last closing share price the estimated dividend yield is 5.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.66.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 292.7, implying annual growth of N/A.
Current consensus DPS estimate is 212.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.1.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 223.32 cents and EPS of 282.19 cents.
At the last closing share price the estimated dividend yield is 6.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.51.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 286.6, implying annual growth of -2.1%.
Current consensus DPS estimate is 209.4, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.3.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WGX    WESTGOLD RESOURCES LIMITED

Gold & Silver - Overnight Price: $0.91

Canaccord Genuity rates ((WGX)) as Buy (1) -

Canaccord Genuity retains its Buy rating and $1.75 target for Westgold Resources despite a miss on earnings (EBITDA) and profit for the 1H.

Management maintained production and cost guidance ranges for FY23 and the analyst notes both measures are trending toward the top-end of their respective ranges.

On Canaccord's estimates of the current hedging position, the company should be fully exposed to the spot gold price by early FY24 

This report was published on February 27, 2023.

Target price is $1.75 Current Price is $0.91 Difference: $0.84
If WGX meets the Canaccord Genuity target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 EPS of 0.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9100.00.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 455.00.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WPR    WAYPOINT REIT LIMITED

REITs - Overnight Price: $2.65

Moelis rates ((WPR)) as Buy (1) -

Waypoint REIT's December-half result appears to have broadly met Moelis' estimates, but EPS forecasts fall to reflect right interest rate assumptions. 

Net tangible assets fell following asset sales and gearing rose to 30.7% from 27.3% at June 30 to reflect the company's buyback and valuation reduction.

Moelis appreciates the defensive nature of the company and notes the company is trading at a -13% discount to net tangible assets, but expects limited direct market activity is likely to dampen larger capital movements.

Buy rating retained. Target price eases to $2.99 from $3.05.

This report was published on February 27, 2023.

Target price is $2.99 Current Price is $2.65 Difference: $0.34
If WPR meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $2.74, suggesting upside of 3.4%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Moelis forecasts a full year FY23 dividend of 16.40 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 6.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.3, implying annual growth of -14.2%.
Current consensus DPS estimate is 16.6, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 16.3.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 17.00 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 6.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.5, implying annual growth of 1.2%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

XRF    XRF SCIENTIFIC LIMITED

Mining Sector Contracting - Overnight Price: $1.05

Canaccord Genuity rates ((XRF)) as Buy (1) -

Canaccord Genuity continues to see upside for shares of XRF Scientific, despite a stellar price rise over the last six years, after 1H earnings again came in ahead of expectations.

Earnings (EBITDA) of $6.3m exceeded the analyst's forecast by 19%. Management commentary suggests growth was generated from the mining (70% of overall revenue) and industrial sectors, while positive growth was also evident in Europe, Asia and the Americas. 

Such is the company's market position, explains the broker, that the main cost input can quadruple (lithium) and not impact on margins. Lithium is a key raw material in the consumables business.

Canaccord envisages further earnings growth and multiple expansion and retains its Buy rating. The target jumps to $1.16 from 83c.

This report was published on February 27, 2023.

Target price is $1.16 Current Price is $1.05 Difference: $0.11
If XRF meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 2.90 cents and EPS of 5.90 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.80.

Forecast for FY24:

Canaccord Genuity forecasts a full year FY24 dividend of 3.10 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.15.

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

XTE    XTEK LIMITED

Industrial Sector Contractors & Engineers - Overnight Price: $0.54

Bell Potter rates ((XTE)) as Buy (1) -

XTEK's December-half result sharply outpaced Bell Potter's forecasts on most metrics save for net profit after tax due to a higher than expected income tax bill.

Revenue outpaced guidance, gross margins jumped 27.1% on the previous corresponding period, and earnings (EBITDA) rose 321%. On the downside, operating cash weakened as expected due to the receipt of prepaid revenue in FY22, which was still recognised in the FY23 December-half accounts. As a result, cash at bank fell -80% to $6.9m.

EPS forecasts are downgraded -12% in FY23 and FY24; and -15% in FY25 to reflect an increased tax rate.

Buy rating retained. Target price falls -7.5% to 88c from 95c.

This report was published on February 28, 2023.

Target price is $0.88 Current Price is $0.54 Difference: $0.345
If XTE meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.30.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 0.80 cents and EPS of 14.40 cents.
At the last closing share price the estimated dividend yield is 1.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.72.

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

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.