Daily Market Reports | May 13 2024
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)
AGE ASG ASN BRE GDF IMM IPX LEL LIN (2) LOV MAH MEI (2) MQG NAB NST NWC QUB SOM WA1 WOW
SOM SOMNOMED LIMITED
Medical Equipment & Devices - Overnight Price: $0.20
Wilsons rates ((SOM)) as Market Weight (3) -
Wilsons maintains a Market Weight rating on SomnoMed with a revised target price of $0.23, down from $0.45.
This adjustment is prompted by an operational review revealing capacity constraints, leading to a guidance downgrade and a capital raising.
The broker explains funds raised are intended to clear debt, invest in manufacturing, and stabilise the core business before launching RestAssure, a new 'connected care' platform for oral appliance sleep apnoea therapy.
This report was published on May 6, 2024.
Target price is $0.23 Current Price is $0.20 Difference: $0.03
If SOM meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.17.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.76.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WA1 WA1 RESOURCES LIMITED
Industrial Metals - Overnight Price: $20.17
Canaccord Genuity rates ((WA1)) as Speculative Buy (1) -
Canaccord Genuity maintains a Speculative Buy rating on WA1 Resources Ltd., raising the target price to $27.50 from $17.50.
The higher target reflects improved valuation metrics based on the company's progress in metallurgical test work and advanced recovery studies at the Luni niobium project in Western Australia.
As per the broker's assessment, initial test results from the flotation studies have demonstrated viable recovery processes, supporting a more optimistic assessment of the project’s economic viability.
WA1 Resources continues to advance its exploration and development agenda, with a Maiden Resource Estimate expected in the coming months, the broker adds.
This report was published on May 3, 2024.
Target price is $27.50 Current Price is $20.17 Difference: $7.33
If WA1 meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WOW WOOLWORTHS GROUP LIMITED
Food, Beverages & Tobacco - Overnight Price: $30.72
Jarden rates ((WOW)) as Overweight (2) -
Woolworths Group experienced a challenging 3Q according to Jarden with a 2.8% lift in sales year-on-year.
Australian food lost market share to Coles Group ((COL)). Breakeven at BigW is now not expected in the 2H24 and supply chain costs of -$90m-$100m are forecast in FY25.
Despite the downbeat results, Jarden points to a more upbeat tone from management on recent trends.
The broker's FY24 EPS forecasts are trimmed -1.5% and -4% for FY25. Overweight retained. Target is reduced to $39.90 from $40.40.
This report was published on May 10, 2024.
Target price is $39.90 Current Price is $30.72 Difference: $9.18
If WOW meets the Jarden target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $32.83, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 108.00 cents and EPS of 148.00 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 137.7, implying annual growth of 3.3%.
Current consensus DPS estimate is 113.2, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 22.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 113.00 cents and EPS of 156.30 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.65.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 142.2, implying annual growth of 3.3%.
Current consensus DPS estimate is 103.7, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 21.6.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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