Weekly | A2 Milk shares rocket 18% on guidance upgrade and big dividend news

ASX_Stars
11-24

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,393.80 on Friday, up 1.31% in the past 5 days.

1. $A2 MILK CO LTD(A2M.AU)$ +13.31%

  • Investors have been scrambling to buy the company's shares after it released a trading update ahead of its annual general meeting. According to the release, business has been stronger than expected during the first half, which has led to a revenue guidance upgrade.

  • But the bigger news is that A2 Milk is finally going to start sharing its profits with its shareholders. After sitting on a mountain of cash for some time, the company has decided that now is the time to pay dividends.

  • the company is now forecasting mid to high single-digit revenue growth in FY 2025 versus FY 2024. This compares favourably to its previous guidance of mid single-digit growth. A2 Milk's EBITDA margin as a percentage of revenue in FY 2025 is still expected to be broadly in line with FY 2024.

2. $TECHNOLOGY ONE LTD(TNE.AU)$ +13.26%

  • ASX 200 stock Technology One Ltd is pushing higher on Tuesday after the company released its FY24 results. Zooming out, it has lifted more than 74% this year to date.

  • Here are the key highlights from Technology One's FY24 results: Profit before tax climbed 18% to $152.9 million, exceeding guidance of 12%-16%. Total Annual Recurring Revenue (ARR) reached $470.2 million, up 20%, with a target to surpass $500 million by H1 FY25.

  • Technology One, the business, had a good year, with pre-tax profits up 30% over the prior corresponding period. This was underscored by $128 million in R&D for the year into its SaaS platform. This approach looks to have resonated with clients, with management reporting a 117% net revenue retention rate.

3. $NORTHERN STAR RESOURCES LTD(NST.AU)$ +12.93%

  • the Northern Star Resources Limited share price is up 81% in the last 5 years, clearly besting the market return of around 22%. During five years of share price growth, Northern Star Resources achieved compound earnings per share (EPS) growth of 18% per year. This EPS growth is higher than the 13% average annual increase in the share price.

  • It's good to see that Northern Star Resources has rewarded shareholders with a total shareholder return of 48% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 15% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper.

4. $PALADIN ENERGY LTD(PDN.AU)$ +12.48%

  • Uranium miners led a rally by energy stocks on the AU as RBC Capital Markets said it expects global uranium requirements to grow by more than 50% by 2040.

  • Following a 23% decline over last year, recent gains may please Paladin Energy Ltd institutional owners. Bell Potter still sees value in Paladin Energy's shares and recommending them as a buy with a heavily reduced price target of $9.70 (from $14.40). Based on its current share price, this implies potential upside of 33% for investors over the next 12 months.

5. $DEEP YELLOW LTD(DYL.AU)$ +10.96%

  • Deep Yellow Limited has released an amended version of its 2024 AGM corporate presentation, which now includes additional appendices. This update aims to provide investors with a more comprehensive overview of the company’s strategies and developments. The uranium-focused company continues to position itself as a significant player in the global market.

  • Deep Yellow Limited has announced the issuance of 30,000 performance rights as part of its employee incentive scheme, which will remain unquoted on the ASX. This move is part of the company’s strategy to motivate and retain talented employees, aligning their interests with shareholder value. Investors in the stock market may find this development significant as it underscores Deep Yellow’s commitment to long-term growth.

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Comments

  • CaesarHicks
    11-25
    CaesarHicks
    A2 Milk's dividend news is a game changer! Excited to see how this impacts my portfolio.
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