18 Share Tips – 24th June 2024

Braden Gardiner, Tradethestructure

BUY RECOMMENDATIONS

BUY – CSL (CSL)

CSL is a global biotechnology company. It recently won a US contract to deliver about 4.8 million doses of pre-pandemic vaccine that is well matched to the H5N1 bird flu strain. The company lifted total revenue by 11 per cent at constant currency in the first half of fiscal year 2024 when compared to the prior corresponding period. In my view, the shares are trading at a discount for a reliable performer. According to my technical analysis, I believe the share price could test up to $314.

BUY – Change Financial (CCA) 

This global financial technology company provides tailored payment solutions. It recently signed one of the biggest New Zealand credit unions as a processing and issuing client. The contract with Unity Credit Union is anticipated to exceed $A9 million over the initial three-year term. I expect the share price to move higher from here as the company attracts more buyers. We have a speculative buy on the stock.

HOLD RECOMMENDATIONS

HOLD – Pro Medicus (PME) 

The company provides medical imaging software and services to hospitals and health care groups across the world. The company has been a favourite for investors, with the price in a clear uptrend. The shares have risen from $65.13 on June 23, 2023, to trade at $135.665 on June 20, 2024. It’s difficult to fight momentum, so optimistic investors can hold for potentially more gains. However, I suspect we will see profit taking at some point.

HOLD – Commonwealth Bank of Australia (CBA)  

Shares in Australia’s biggest bank continue to perform – and beyond some people’s expectations. The shares have risen from $96.87 on November 1, 2023, to trade at $127.325 on June 20, 2024. In my view, the outlook for the latest rally is linked to the performance of S&P/ASX 200. Any tightening in CBA revenue growth could lead to selling pressure. Traders may want to consider locking in some gains if the share price falls below $116.

SELL RECOMMENDATIONS

SELL – Ainsworth Game Technology (AGI) 

The gaming machine and content company expects profit before tax, excluding currency and one-off items, to range between $13 million and $15 million in the first half of calendar year 2024 , a reduction on the $18 million reported in the second half of calendar year 2023. The shares have fallen from $1.165 on May 8 to trade at 88.5 cents on June 20. Investors may want to consider selling AGI and look elsewhere for capital gains and dividend yield.

SELL – Genesis Minerals (GMD)

The gold miner focuses on the Leonora district in Western Australia. The share price has struggled to move above $2 this year and technically appears to be weakening. The spot gold price recently retreated since trading above $US2400 an ounce. I expect profit taking to pressure the gold price lower. GMD’s share price has risen from $1.33 on October 4, 2023, to trade at $1.815 on June 20. Investors may want to consider locking in some gains.

Niv Dagan, Peak Asset Management

BUY RECOMMENDATIONS

BUY – Ansell (ANN) 

This global leader makes personal protection equipment for healthcare and industrial workplaces. Diversification provides stability and reduces dependence on any single market segment. Ansell enjoys an enviable reputation for its brands. Innovation enables ANN to capture market share in emerging markets. Ansell has demonstrated effective cost management and operational efficiencies, which support sustainable growth and profitability.

BUY – Goodman Group (GMG) 

Goodman is an integrated industrial property group. It reported $12.9 billion of development work in progress across 82 projects on March 31. The company’s solid earnings growth and robust financial health underpin its appeal. Given its global presence and consistent performance, Goodman is a promising candidate for a long-term investment, as it offers stability and growth potential.

HOLD RECOMMENDATIONS

HOLD – Evolution Mining (EVN) 

The company expects to produce about 749,000 ounces of gold in fiscal year 2024 and approximately 65,000 tonnes of copper. It has forecast group production to increase in fiscal year 2025. The company has a diverse portfolio of quality assets. Focusing on improving operational efficiencies amid exploration initiatives paint a bright outlook for sustainable growth.

HOLD – Adriatic Metals PLC (ADT) 

The company is focusing on developing its silver project in Bosnia and Herzegovina. It’s also undertaking exploration at the Raska zinc deposit in Serbia. Strategically located in Bosnia and Herzegovina offers a favourable cost structure and access to European markets. The company has a solid track record of securing funding for ongoing exploration and development activities. Effective management and operational capabilities offer potential long-term value.

SELL RECOMMENDATIONS

SELL – BrainChip Holdings (BRN) 

This artificial intelligence company ended the recent March quarter with $US13 million in cash compared to $US14.3 million in the prior quarter. Net operating cash outflows in the March quarter were higher than the prior quarter. Cash inflows from customers were lower in the March quarter compared to the prior quarter. The shares have fallen from 49 cents on February 26 to trade at 21 cents on June 20. We prefer other stocks at this stage of the cycle.

SELL – Poseidon Nickel (POS) 

The company is focused on developing its nickel assets in Western Australia. The company reported a loss of $47.1 million for the six months ending December 31, 2023. The loss included an impairment charge of $42.7 million. POS operates in a competitive market. In our view, the company faces too many challenges. The share price is volatile. The shares were trading at less than a cent on June 20.

Tony Locantro, Alto Capital

BUY RECOMMENDATIONS

BUY – Strata Investment Holdings PLC (SRT)

SRT invests in early-stage resources opportunities. It has an uncapped 2 per cent net smelter royalty over future production involving a Sandfire Resources subsidiary within the Botswana Kalahari copper belt covering 8000 square kilometres. Strata recently reported enhanced royalty prospects from Sandfire’s maiden mineral resource estimate at the A1 copper-silver deposit. SRT also has holdings in other emerging resource companies across multiple sectors, with speculative upside potential.

BUY – Copper Search (CUS)

Drilling started on June 11 at the Peake Project in South Australia to test the Paradise Dam and Douglas Creek prospects. These targets represent large-scale copper prospects and should be considered high risk. Drilling is expected to take six weeks, with on-going reporting as required. Regional exploration, with a focus on gold prospectivity has also started. The projects are well funded after a capital raising. Exploration carries uncertainty, but any positive news can be rewarding for investors prepared to take calculated risk.

HOLD RECOMMENDATIONS

HOLD – Syntara (SNT)

The drug development company’s lead candidate SNT-5505 is for bone marrow cancer myelofibrosis that disrupts the body’s normal production of blood cells. The company is planning to deliver results from four phase 2 studies by mid 2025. SNT is a speculative stock for investors willing to take on risk for potential reward. The shares have risen from 1.5 cents on May 2 to trade at 2.6 cents on June 20.

HOLD – IGO Limited (IGO)

The company owns nickel operations in Western Australia. IGO and a joint venture partner have a 51 per cent stake in the Greenbushes Lithium mine. A capital investment program at Greenbushes during 2024 primarily relates to the construction of a chemical grade plant 3 (CGP3) and a tailings storage facility (TSF4). Greenbushes is a low-cost producer. Investment aims to expand production.

SELL RECOMMENDATIONS

SELL – WiseTech Global (WTC)

WiseTech develops software for the global logistics industry. The company reported a 32 per cent increase in revenue in the first half of fiscal year 2024 when compared to the prior corresponding period. Statutory net profit after tax was up 8 per cent. The share price recently breached $100. It was trading at $92.01 on June 20. In our view, the company is trading at a premium, which may be factoring in a continuing strong growth phase. Investors may want to consider cashing in some gains.

SELL – Commonwealth Bank of Australia (CBA)

The CBA has outperformed the broader banking sector. The CBA shares have been enjoying favourable momentum. Headwinds include possibly slower economic growth and persistent inflation. It might be prudent to reduce risk and lock in some profits at these high levels.

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The above recommendations are general advice and don’t take into account any individual’s objectives, financial situation or needs. Investors are advised to seek their own professional advice before investing. Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.