Latest news with #Morgans
West Australian
8 hours ago
- Business
- West Australian
Mining tipped to again push top-tier profits lower as reporting season kicks off
Australia's corporate sector is facing a 'decisive test' from an imminent reporting season that will likely confirm a second consecutive year of weaker profit growth and uncertain dividends. Analysts are tipping ASX200 annual company profits to be released over the next five weeks will show an average reduction of up to nearly 2 per cent off the back of another weak year for big miners and a sluggish national economy. They're warning that investors will want to see better if the share market is to push deeper into record territory. UBS said while stocks had rallied hard since April, 'the local equity market story hasn't necessarily improved'. 'The economy is slowing, rate cuts have thus far been relatively un-impactful, and earnings are declining,' it said. 'The downbeat tones we expect to come from August results may not be enough to halt the markets 'melt-up' . . . but they should cause it to pause.' Reporting season for the majors kicks off next week, with Rio Tinto and lithium miner PLS on Wednesday before hitting top gear in the last two weeks of August and a penultimate day on August 28, packed with Mineral Resources, Wesfarmers, IGO, Qantas, South32 and Sandfire Resources. Analysts said investor focus was now switching from US President Donald Trump's tariffs to companies' ability to defy domestic economic conditions that have not received the expected boost from interest rate cuts. The reporting season 'arrives as the decisive test for corporate Australia's earnings resilience, with company-specific fundamentals now taking precedence over macro considerations', said Morgans, which has forecast a 1.2 per cent fall in ASX200 profits. 'While earnings and share prices have shown remarkable resilience despite global trade uncertainty since the February reporting period, the focus shifts to companies' ability to maintain margins and drive growth amid subdued trading conditions.' UBS, which is tipping a 1.7 per cent drop in profit for the 2025 financial year after the previous year's 5.4 per cent decline, expressed concern that rate cuts have lost their power to stimulate economic growth, making it more difficult for companies. Mining and energy companies are seen as the biggest drag on earnings, with their profits expected to be off another 17 per cent for the year on weaker commodity prices and persistent concerns about China's economy. Outside of resources, 'things (are) look less bad, but still relatively lacklustre', with the exception of tech (forecast 26.1 per cent rise), communication services (27.6 per cent), banks (7.8 per cent), healthcare and selected industrial companies, UBS said. Morgans warned that final dividends may be smaller than some investors expect, after surprisingly good returns for the 2024 financial year as payout ratios recovered towards their 10-year average of about 72 per cent or 73 per cent. 'Payout expectations have eased through 2025, and we moderate dividend expectations slightly as boards note sluggish earnings growth and a nod toward conservative capital management,' it said. UBS forecasts profits to return to growth this financial year, tipping a 5.3 per cent rise across the ASX200. Morgans expects growth of 5.4 per cent for 2025-26, but cautions expectations are already slipping after forecast growth of 8 per cent in just April.
News.com.au
5 days ago
- Business
- News.com.au
ScoPo's Powerplays: Morgans expert Iain Wilkie fills in to talk health stocks as CSL leads a 5pc rally
ASX health stocks rally 5% over past five days as sector's largest company CSL rises 6.3% Recruitment completed for a phase II investigator-led study of Clarity's prostate cancer imaging agent EBR receives preliminary Transitional Pass-Through reimbursement in US for its WiSE CRT system Morgans healthcare and life sciences expert Iain Wilkie explains what the movers and shakers have been doing in health and gives you his ASX Powerplay. The ASX healthcare sector has had a welcome dose of good medicine this week, climbing on the back of strong gains from heavyweight CSL (ASX:CSL), which is up 6.53% in the past five days on no new announcements. At 2.30pm on Friday the S&P/ASX 200 Health Care index (ASX:XHJ) was up ~5% for the week, while the benchmark S&P/ASX 200 (ASX:XJO) rose 2.21%. In a note to client last week Morgans' analyst Dr Derek Jellinek wrote that the broker "views CSL as materially undervalued" ahead of its FY25 results, which are due to be reported on August 19. "It's not like the results are going to blow anyone's socks off but his point was that it's just too cheap where it is and if the results are in line it should be positive for the stock," Wilkie said. "It is good to see CSL getting back into favour." Morgans maintains a buy rating on CSL, reducing its 12-month target price to $303.70 from $329.26. New Chinese obesity drug fuels competition In the broader global healthcare market there has been plenty of news this week, with further talk on tariffs on US pharmaceutical imports and the emergence of another potential competitor to weight-loss drug giants Eli Lilly and Novo Nordisk. Chinese biotech Hengrui Pharma and biotechnology startup partner Kailera Therapeutics have shown promising results in a phase III trial of once-weekly subcutaneous injection of their weight loss drug candidate, HRS9531, in obese or overweight individuals living in China. In the 567-person trial involving adults with obesity or who are overweight and have at least one weight-related medical condition, HRS9531 (2mg, 4mg, or 6mg) treated individuals lost an average 18% of their body weight after 48 weeks, or roughly 16% more than those given a placebo. In addition, nearly 90% of trial participants given HRS9531 lost at least 5% of their body weight and over 44% achieved at least 20% weight loss. Management claim HRS9531 has "best-in-class potential", pointing out how one pre-specified analysis showed patients on the highest tested dose lost up to 19.2% of their body weight after 48 weeks, with the drug's effect not yet having plateaued, suggesting it could improve with time. While specific safety data was not disclosed, management noted that most treatment-emergent adverse events were 'mild to moderate' and "gastrointestinal-related". Hengrui plans to file an application in China for approval, while Kailera will initiate global studies that involve higher doses and a longer treatment duration outside of China under the name KAI-9531. Wilkie's Powerplay: Clarity completes recruitment for phase II trial Radiopharmaceutical developer Clarity Pharmaceuticals (ASX:CU6) has announced completed recruitment for a 50 patient, phase II investigator-led study of its prostate cancer imaging agent. The study compares Clarity's copper-isotope based agent 64Cu-SAR-bisPSMA with standard of care gallium based alternative 68Ga-PSMA-11 for detecting prostate cancer recurrence in patients with low PSA levels. The Co-PSMA trial is being held at Sydney's St Vincent's Hospital and aims to compare lesion detection rates between the two imaging agents. "No word or guidance on when these results will be published but we note given it is investigator led, it's generally out of the company's hands as to how long the data analysis will take," Wilkie said. "Likewise, the release of the information may be kept on ice or embargoed until publication in one of the scientific journals." Either way, Wilkie said it would be an interesting, closely watched result with the critical factor beyond detection rate comparisons is whether Clarity's diagnostic imaging leads to a change in treatment decisions compared to the standard of care. Novo Nordisk places order with Clever Culture Systems Clever Culture Systems (ASX:CC5) is up more than 42% this week after announcing Novo Nordisk had placed an order for an APAS Independence system to be placed at its center of excellence site in Denmark. The placement is intended for a comprehensive evaluation to determine the system's appropriateness for implementation throughout Novo's global manufacturing network for pharmaceutical environmental monitoring. Novo Nordisk will compare Clever Culture's automated plate reading technology against its existing manual microbiology workflows. The sale represents Clever Culture's fifth engagement with a leading pharma manufacturer, including AstraZeneca, Bristol Myers Squibb and Thermo Fisher. The company is due to report its Q4 FY25 cashflow report in late July 2025. In a note to clients Morgans' senior healthcare analyst Scott Power said evaluation aligns closely with Clever Culture's targeted sales approach, which focuses on engaging multinational pharmaceutical companies through their Centres of Excellence. "These centres are responsible for vetting new technologies and driving innovation across global operations," he wrote. "CCS's model is designed to support these evaluations with tailored engagement and technical validation. "Based on similar evaluations, CC5 have historically seen these evaluations completing between four to six months prior to the decision to roll out more broadly." EBR gets a reimbursement lift for WiSE CRT System The US Centers for Medicare & Medicaid Services (CMS) has granted preliminary Transitional Pass-Through (TPT) reimbursement for EBR Systems' (ASX:EBR) WiSE CRT system, the world's first and only wireless solution for pacing the left side of the heart. The TPT reimbursement is designed to facilitate hospital adoption of breakthrough medical technologies that demonstrate substantial clinical improvement for patients, but whose costs are not yet fully incorporated in standard Medicare payment rates. TPT reimbursement for WiSE, which was granted US FDA approval in April, will provide hospitals with payment when treating Medicare patients in an outpatient setting for a period of three years. EBR will continue to engage with CMS through the upcoming annual rulemaking and public comment process, with a final determination to follow. "We view preliminary approval of TPT reimbursement as a significant commercial milestone, as it not only should support hospital uptake of WiSE for outpatients, but it also should improve the overall value proposition for broader adoption," Jellinek wrote in a note to clients. Although implants are already underway, Jellinek wrote final TPT approval and a limited market release of WiSE remain on track for October 2025, unlocking access to an initial total addressable market (TAM) of US$3.6 billion. "Now all eyes will turn towards the sales ramp. As this device is a novel treatment option requiring physician education, we view the LMR, targeting key heart failure centers in the US, as an appropriate strategic way to build familiarity and experience, prior to full market release," he wrote. "We see sales surpassing US$80m into CY29. "While certainly not a 'hockey stick', we continue to believe it is a methodical, stage-gated rollout to build strong physician support and closely monitor clinical outcomes, helping to pique interest from any would-be suitor." Morgans has a buy rating and 12-month target price of $2.86 on EBR. Morgans sees upside in new listing Tetratherix Morgans has initiated coverage on wound management house Tetratherix (ASX:TTX), which made its ASX debut on June 30 with a speculative buy rating and 12-month target price of $5.72. Tetratherix has developed a special material TetramatrixTM, which a fluid-like material that can be injected into the body without triggering a foreign body response and can be used in regenerative medicine and surgery. Once in the body, the increase in temperature transforms the liquid into a 3D gel-like matrix that adheres to tissues and can be used in various indications to help bridge injuries or support healing. Initially, the company will develop products targeting three key indications including bone regeneration, tissue spacing, and tissue healing. Management estimates the potential addressable market at US$6.8 billion. Tetratherix is trading around 19% above its $2.88 a share offer price with funds raised from the listing being used to expand the manufacturing facilities and enable short-term milestones to be achieved including collaborations with larger industry players, clinical trial results and regulatory approvals. In a note to client Power said achievement of key milestones would drive investor interest with upcoming catalysts including a master agreement executed with an orthopaedic company, expected in H1 FY 26 and a strategic global partnership with an ophthalmic company expected H1 FY26. Barrenjoey Markets and Morgans Financial were joint lead managers and underwriters to the Tetratherix IPO. ImpediMed doubles US sales in June quarter Medical device company ImpediMed (ASX:IPD) is up ~37% in the past five days after announcing a doubling in US sales during the June quarter. The maker of a lymphodema detection device called Sozo Impedimed sold 44 units in its target US market in the June quarter, compared with 22 in the March quarter. Together with the quarterly renewals, total contract value (TCV) for Q4 FY25 was a record at $6.3m, up 29% compared with $4.9m in Q3 FY25. ImpediMed said nine of the 44 unit sales were secured via a strategic contract with Legacy Health to implement its SOZO Digital Health Platform for lymphoedema prevention in cancer care. As a result of hitting its prescribed sales target, IPD has unlocked and elected to draw down the second tranche (US$5m) of its US$15 million growth capital facility which was announced in February along with extending the interest only period from 24 to 36 months, providing further flexibility to support growth and commercialisation. ImpediMed said it was working towards achieving a similar level of sales in Q1 FY26, with improvement in subsequent quarters as the pipeline matures and additional internal initiatives take effect. "Our focus continues to remain on the installed base growth in the US, which has to date performed below expectation although the announcement was a solid step in the right direction," Wilkie said. "Reimbursement coverage continues to grow and we expect over the next few quarters over 95% coverage will be achieved (currently 75%)." Morgans make no changes to its forecasts for ImpediMed awaiting Q4 FY25 cashflow report expected on July 31 to get more detail around rest of world unit sales and operating expenses base. It has a speculative buy rating on Morgans and 12-month target price of 15 cents. The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article. At Stockhead, we tell it like it is. While EBR Systems is a Stockhead advertiser, the company did not sponsor this article.
South Wales Argus
6 days ago
- Politics
- South Wales Argus
Ed Miliband is 'hardly working class is he' says this reader
He mentions Greta Thunberg, the Swedish globetrotter who mainly flies everywhere to spread her doomsday messages about climate change whilst leaving a massive carbon footprint of her own, just like many celebrities but without the charisma. An ideal role model for Mr Morgans. Our energy minister, Ed Miliband, is a very wealthy man in his own right and can well afford the expensive impositions that he is trying to put on the rest of us peasants in the name of saving the planet. I use the word peasants because, despite his Labour credentials Ed Miliband himself is hardly working-class is he? The British Empire that Mr Morgans has tried to malign did some bad things, but also spread a lot of good across the globe. He should be grateful that he is not residing in some of the recently independent ex-colonies with their version of democracy. With his attitudes and insults, he would need to be careful how he conducted himself, unlike here, where he is a non-entity and nobody takes much notice. Yours sincerely, A. Greenhalgh, Newport
News.com.au
6 days ago
- Business
- News.com.au
Horizon Gold chases $11m raise as money flows to precious metals stocks
Morgans launches $4m placement for WA gold developer Horizon Gold after $75m junior enters trading halt Total to be raised set at $11m, with $7m to come from entitlement offer to existing holders including major shareholder Zeta Resources and HRN board Feasibility study on 2.1Moz Gum Creek gold project near Sandstone in 2026 Junior gold explorers are getting more confident about their potential to raise cash with prices for the precious metal sitting at US$3330/oz. Look no further than Horizon Gold (ASX:HRN), one of a handful of large resource holders in WA not to catch a ride on the magic carpet that is the 2025 ASX gold market. The $75 million explorer, a spinoff of failed nickel miner Panoramic Resources, owns the Gum Creek gold project near Sandstone, where the under the radar junior is planning a feasibility study next year. Despite its low profile, HRN is holding onto 44.5Mt at 1.5gt Au for 2.1Moz, 63% of that in the indicated category, most of it free milling gold with better than 90% recoveries. That's according to a pitch sent to investors on Thursday. After heading into a trading halt, HRN is seeking $11m via a $4m Morgans-led placement at 48c, a 7.7% discount to its last traded price, and a $7m entitlement offer priced at 1 for 9.93 to existing shareholders. It'll be well supported given the tight grip major shareholder Zeta Resources and its board have on the stock – around 79.7% of the company. They'll be taking their full entitlement, a term sheet seen by Stockhead said. Back to the future Like so many other projects in WA and across Australia more broadly, Gum Creek was once a producer, turning out 1.1Moz of gold up to 2005. Unsurprisingly, the company and its brokers think the market is a lot more attractive right now. In the two decades since its closure gold has travelled from $560/oz Aussie to over $5000/oz. One handbrake previously had been the refractory nature of many of the resources at Horizon, not the done thing to develop if you're a small, lightly capitalised gold company given the additional costs involved with processing methods designed for tougher ore like pressure oxidation, bug plants, roasters and ultra-fine grinding mills. The current MRE now contains 1.3Moz of gold resources interpreted to be free milling – 32.97mt at 1.22g/t. HRN is planning to locate a mill for the project centrally near the Gidgee Shear Zone deposit, which contains 886,000oz at 1.53g/t, with Howards (267,000oz) at 0.81g/t the other large ore source expected to underpin its base feed. Given the historic Gidgee Mill, it's already got a permitted site. A March 2024 scoping study suggested the project could produce 84,000ozpa at an all in sustaining cost of $1931/oz with a pre-production capital bill of $238.5m. That was conducted at a now very quaint looking $3300/oz Aussie gold price. Since the study there's been a dramatic shift in the power dynamics in the region as well, notably with the aggressive M&A strategy of Brightstar Resources (ASX:BTR), which views Sandstone as potentially its largest production hub beyond the development of its Menzies and Laverton gold projects after the junior gold producer merged with Alto Metals and acquired the Montague project of Gateway Mining (ASX:GML). BTR is now in discussions with Aurumin (ASX:AUN) over a deal for the last significant gold holding in the region outside Horizon's. Hot stuff. Having just completed over 13,000m of drilling, Horizon is planning to put its funds towards a first half 2026 feasibility study and a resource update due in the second half of 2025. Just under half of the new capital is to be put towards exploration and development activities. Its the latest significant capital raising in the gold and silver space, which has propped up the junior exploration sector in 2025 on the ASX. Along with Horizon, near-term Mid West gold developer New Murchison Gold (ASX:NMG) pocketed $15m last month, while $320m capped Paterson Province explorer Antipa Minerals (ASX:AZY) raised $40m earlier in July for its 2.5Moz Minyari Dome project. South American silver explorer Andean Silver (ASX:ASL) is also halted, tapping the market for fresh capital currently. HRN is up only 4% YTD, but over 80% in the past 12 months, but the pitch is that it's trading at a much lower value per resource ounce compared to developer peers.
Business Insider
16-07-2025
- Business
- Business Insider
Morgans Remains a Hold on Fortescue Metals Group Ltd (FSUMF)
Morgans analyst Adrian Prendergast maintained a Hold rating on Fortescue Metals Group Ltd today and set a price target of A$16.50. The company's shares closed yesterday at $11.10. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Prendergast covers the Energy sector, focusing on stocks such as Beach Energy , Santos Limited, and Empire Energy Group Limited. According to TipRanks, Prendergast has an average return of 11.4% and a 51.41% success rate on recommended stocks. In addition to Morgans, Fortescue Metals Group Ltd also received a Hold from Macquarie's Jon Scholtz in a report issued on July 10. However, on July 8, RBC Capital maintained a Buy rating on Fortescue Metals Group Ltd (Other OTC: FSUMF). Based on Fortescue Metals Group Ltd's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $7.64 billion and a net profit of $1.55 billion. In comparison, last year the company earned a revenue of $9.51 billion and had a net profit of $3.34 billion Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FSUMF in relation to earlier this year.
