Daily Market Reports | May 28 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)
AIA ALQ APE (2) ARL DMP JHX MAQ MAY PLT RIC SHL SKC TLS VVA WEB
TLS TELSTRA GROUP LIMITED
Telecommunication - Overnight Price: $3.53
Jarden rates ((TLS)) as Buy (1) -
Telstra Group announced organisational changes and new cost-saving actions, aiming to remove up to -2,800 roles by the end of 2024, targeting -$350m in savings for FY25, notes Jarden.
The broker highlights the decision not to increase postpaid mobile prices by CPI in July is the biggest surprise and results in Jarden reducing its FY24 mobile earnings forecast by around -$170m.
Earnings forecasts are adjusted by -0.6% for FY24 and -10.5% for FY25, with the broker also lowering the expected DPS by -8% in FY25 to 18c.
Buy rating unchanged. Target revised to $4 from $4.40.
This report was published on May 21, 2024.
Target price is $4.00 Current Price is $3.53 Difference: $0.47
If TLS meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $4.01, suggesting upside of 12.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 17.00 cents and EPS of 16.90 cents.
At the last closing share price the estimated dividend yield is 4.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.2, implying annual growth of 9.0%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 19.6.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 18.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 5.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.3, implying annual growth of 6.0%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.4.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
VVA VIVA LEISURE LIMITED
Travel, Leisure & Tourism - Overnight Price: $1.55
Petra Capital rates ((VVA)) as Buy (1) -
Viva Leisure annnounced the successful rollout of Viva Pay across the Plus Fitness franchise network, observes Petra Capital.
The analyst forecasts total processing volume annually to reach approximately $120m and Viva Pay to contribute over $4m in EBITDA and double over the next few years.
Financial forecasts remain unchanged, with expected EPS growth of 26.9% and 28.0% for FY24 and FY25, respectively. The analyst views there remain acquisition opportunities to enhance earnings through operational synergies.
Buy rating and $2.52 target unchanged.
This report was published on May 22, 2024.
Target price is $2.52 Current Price is $1.55 Difference: $0.97
If VVA meets the Petra Capital target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 12.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.81.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 15.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WEB WEBJET LIMITED
Travel, Leisure & Tourism - Overnight Price: $8.78
Wilsons rates ((WEB)) as Overweight (1) -
Wilsons analysts saw Webjet releasing a strong FY24 result. The broker has maintained an Overweight rating and slightly lowered its price target to $10.04 from $10.13.
Group EBITDA was $188.1m, near the top end of guidance and slightly better than Wilsons' estimate, and so was the net profit.
The broker highlights WebBeds performed particularly well, with bookings and TTV for the first seven weeks of FY25 up circa 35% year-on-year.
Despite TTV being down -5% for WebOTA, EBITDA rose due to higher margin products. Forecast EBITDA for FY25 lifted to $222.9m from $221.0m and net profit to $154.7m from $151.4m.
This report was published on May 23, 2024.
Target price is $10.04 Current Price is $8.78 Difference: $1.26
If WEB meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $10.27, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 41.3, implying annual growth of 118.8%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 21.1.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 47.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.1, implying annual growth of 18.9%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 17.8.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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