Daily Market Reports | Jul 11 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)
A2M AEE AMP BGL BOE CGF CIP CMM (2) DEG EVN FEX GOR HUB IFL KAR LTR (2) MAQ MFG NST NWL PPT PTM RRL SFR WGX
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $6.82
Jarden rates ((A2M)) as Overweight (2) -
Jarden observes the a2 Milk Co share price is up some 60% in 2024 to date and attributes the rise to higher China newborns in 2023; the launch of new products and strong execution on the China label in the 1H24.
The company has continued to introduce new products in the 2H24, including the second English label and two new nutritional products Move and Immune for adults. Jarden forecasts a2 Milk Co will invest -NZ$500m across FY25/FY26.
Jarden raises EPS estimates by 3% for FY24 and 4% for FY25, having incorporated the increased spend and a higher return on capital employed.
Target rises to NZ$7.55 from NZ$6.50. Overweight rating unchanged.
This report was published on July 3, 2024.
Current Price is $6.82. Target price not assessed.
Current consensus price target is $6.54, suggesting downside of -4.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 22.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.75.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.2, implying annual growth of N/A.
Current consensus DPS estimate is 0.9, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 32.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 25.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.3, implying annual growth of 19.3%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 27.1.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AEE AURA ENERGY LIMITED
Energy - Overnight Price: $0.13
Petra Capital rates ((AEE)) as No Rating (-1) -
Petra Capital highlights Aura Energy expects a final investment decision on its Tiris project in the 1Q 2025.
The broker notes water resource drilling in the Taoudeni Basin starting in July, mine plan optimisation post-resource upgrade to 91mlbs,, and engagement with Lycopodium for process plant performance and cost optimisation.
Financing arrangements are also underway, with Orimco appointed to manage debt funding, Petra Capital observes with first uranium production anticipated in 2H2026.
The Buy rating and 45c target are retained.
This report was published on July 5, 2024.
Target price is $0.45 Current Price is $0.13 Difference: $0.32
If AEE meets the Petra Capital target it will return approximately 246% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.60.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.60.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMP AMP LIMITED
Wealth Management & Investments - Overnight Price: $1.11
Jarden rates ((AMP)) as Neutral (3) -
Jarden assesses the higher-for-longer possibility for domestic interest rates on the wealth management sector.
The broker trims EPS forecasts across most of the wealth and asset management coverage, accounting for higher domestic interest rates, strong 4Q24 global equity returns against weaker domestic returns and a higher Australian dollar.
Jarden revises the AMP EPS forecasts down by -1% in FY24 and -3.3% in FY25.
Neutral rating and target price lifted to $1.20 from $1.17.
This report was published on July 3, 2024.
Target price is $1.20 Current Price is $1.11 Difference: $0.085
If AMP meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.13, suggesting upside of 2.0%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 5.00 cents and EPS of 7.80 cents.
At the last closing share price the estimated dividend yield is 4.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.4, implying annual growth of 915.9%.
Current consensus DPS estimate is 4.6, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.7.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 7.00 cents and EPS of 10.10 cents.
At the last closing share price the estimated dividend yield is 6.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.7, implying annual growth of 35.9%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 13.0.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BGL BELLEVUE GOLD LIMITED
Gold & Silver - Overnight Price: $1.97
Goldman Sachs rates ((BGL)) as Buy (1) -
Goldman Sachs still prefers near-term margins/returns over long-term ounces when selecting exposures in the Australian Gold sector. Assets with less execution risk and those best positioned to capture increases in gold pricing are also favoured.
The analysts remain wary on gold stocks continuing to underperform on higher costs/capex guidance for FY25 in upcoming quarterly results.
For Bellevue Gold, Goldmans notes a strong production outlook via ramp-up of the Bellevue mine, along with low-cost expansion optionality. Its felt the company has an attractive long-term cost profile due to superior gold grades.
The Buy rating and $2.20 target are unchanged.
This report was published on July 9, 2024.
Target price is $2.20 Current Price is $1.97 Difference: $0.23
If BGL meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $2.07, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 29.7.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.6, implying annual growth of 173.5%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.9.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BOE BOSS ENERGY LIMITED
Uranium - Overnight Price: $3.75
Canaccord Genuity rates ((BOE)) as Speculative Buy (1) -
According to management, Boss Energy will produce at least 850klbs of U308 by 30 June, 2025, (including 57klbs produced in FY24), but consensus and Canaccord Genuity were forecasting 1.1mlbs and 1.2mlbs, respectively.
Higher uranium grades have failed to translate into better production than outlined in the definitive feasibility study (DFS), observe the analysts. The broker's FY25 production forecast for Honeymoon and Alta Mesa are trimmed to 860klbs and 202klbs, respectively.
The Speculative Buy rating is retained, and the target falls to $5.85 from $6.00.
This report was published on July 5, 2024.
Target price is $5.85 Current Price is $3.75 Difference: $2.1
If BOE meets the Canaccord Genuity target it will return approximately 56% (excluding dividends, fees and charges).
Current consensus price target is $5.05, suggesting upside of 26.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity 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 30.99.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.1, implying annual growth of 183.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 39.4.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 16.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.1, implying annual growth of 79.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 22.0.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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