Daily Market Reports | May 15 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ANZ APE ASG AUB BMN CKF CWY DUG EDV EVN GEM LTR NST PXA SLR THL TIE TLS VIT WBC WGX
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $28.01
Goldman Sachs rates ((ANZ)) as Buy (1) -
ANZ Bank reported 1H24 results revealed cash earnings were down -7% year-over-year to $3,552m, slightly below Goldman Sachs' estimates.
The broker points to productivity gains with -$201m saved in the 1H24, and a robust capital position with a CET1 ratio of 13.5%.
Macroeconomic challenges and competitive pressures remain and the bank is focusing its strategy on productivity and improving the profitability of its Institutional business, the broker comments.
ANZ Bank also announced a $2bn on-market buyback. The analyst adjusts FY24 EPS forecast by -0.6% and 2.8% for FY25 EPS.
Buy rating, with the broker citing an attractive -30% valuation discount to peers. The target is lifted to $28.15 from $27.69.
This report was published on May 8, 2024.
Target price is $28.15 Current Price is $28.01 Difference: $0.14
If ANZ meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $27.57, suggesting downside of -1.6%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 223.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 225.4, implying annual growth of -4.8%.
Current consensus DPS estimate is 165.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.4.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 218.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 225.7, implying annual growth of 0.1%.
Current consensus DPS estimate is 167.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.4.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $12.45
Canaccord Genuity rates ((APE)) as Buy (1) -
The Canaccord Genuity analyst notes all states recorded double-digit sales growth in the April VFACTS data which rose 18.3%.
Light vehicle sales rebounded due to a significant backlog and unlocking supply constraints, which the broker expect to support sales through to the end of 2024.
April sales for Toyota's were up 72.7% on the previous corresponding period, positively impacting Eagers Automotive, due to its overweight position to the brand.
There are no changes to forecasts and Canaccord Genuity points to some margin risks, but also believes the structural superiority of Eagers Automotive margins compared to peers puts it in a strong position.
Price target is set at $16.10, with a Buy rating maintained.
This report was published on May 3, 2024.
Target price is $16.10 Current Price is $12.45 Difference: $3.65
If APE meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $15.01, suggesting upside of 20.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 54.00 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 4.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.38.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 111.2, implying annual growth of 0.4%.
Current consensus DPS estimate is 71.9, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 11.2.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 64.00 cents and EPS of 160.00 cents.
At the last closing share price the estimated dividend yield is 5.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 109.9, implying annual growth of -1.2%.
Current consensus DPS estimate is 74.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 11.3.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASG AUTOSPORTS GROUP LIMITED
Automobiles & Components - Overnight Price: $2.58
Moelis rates ((ASG)) as Buy (1) -
Logistics issues and port congestion posed delivery challenges for Autosports Group and impacted on luxury car brands like BMW, Mini, Audi, VW, and Mercedes-Benz, that it supplies for the 2024 period ending April, notes Moelis.
The analyst points to similar problems as highlighted by Qube Holdings ((QUB)) last week. Moelis adds industry sources remain upbeat on the demand for luxury cars.
The broker revises FY24 and FY25 EPS forecasts by -3.2% and 2.8%, respectively, which reflect temporary logistics challenges and an expected resolution to support future growth.
Buy rating and the target lifts to $3.40 from $3.20.
This report was published on May 6, 2024.
Target price is $3.40 Current Price is $2.58 Difference: $0.82
If ASG meets the Moelis target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $3.08, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 18.90 cents and EPS of 36.70 cents.
At the last closing share price the estimated dividend yield is 7.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 35.4, implying annual growth of 8.8%.
Current consensus DPS estimate is 19.5, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 7.3.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 16.40 cents and EPS of 31.90 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.09.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.7, implying annual growth of -13.3%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 8.4.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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