Daily Market Reports | 10:30 AM
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.
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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)
ALK (2) ALL ANG CEH CNU CXO DMP IGO IPL LNW LTM LTR MIN OBM PLS TLC (2)
ALK ALKANE RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.56
Moelis rates ((ALK)) as Buy (1) -
Alkane Resources released the Scoping Study for the Boda-Kaiser project and it highlights the potential for a large-scale, long-life open pit and underground gold and copper mine, Moelis observes.
The analyst points to a 20mtpa scenario, with annual production of 159koz gold and 36kt copper and a pre-production capex of -$1.78bn and sustaining capex of -$200m over a 17-year project life.
The project has an estimated value of $1.81bn with the broker assuming commodity prices of $3,500oz gold and $15,00/t copper.
Near-term management remain focused on the Tomingley expansion project, with FY25 expected to be a transition year.
Buy rating unchanged and the target revised to 65c from 60c.
This report was published on July 11, 2024.
Target price is $0.65 Current Price is $0.56 Difference: $0.095
If ALK meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.61.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.34.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Petra Capital rates ((ALK)) as Buy (1) -
Alkane Resources released a "robust" scoping study for its Boda-Kaiser Gold Copper Project, which revealed a potential 20mt operation versus expectations of 10mt and 5mt, respectively, notes Petra Capital.
The pre-production capex is estimated at up to -$1.78bn, with a focus on funding and strategic partnerships over the next 12 months.
Petra Capital believes the market attaches little value to Boda-Kaiser and this is expected to improve as the company progresses with its development plan.
Rating, Buy; Target Price lowered to $1.00 from $1.12.
This report was published on July 11, 2024.
Target price is $1.00 Current Price is $0.56 Difference: $0.445
If ALK meets the Petra Capital target it will return approximately 80% (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 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.42.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALL ARISTOCRAT LEISURE LIMITED
Gaming - Overnight Price: $52.39
Goldman Sachs rates ((ALL)) as Initiation of coverage with Neutral (3) -
Goldman Sachs re-initiates coverage of Aristocrat Leisure after a year's absence with a Neutral rating and $55.30 target price.
The broker appreciates the company's leading market position in land-based content and cabinets but remains Neutral rated due to a likely tapering of growth in FY25 after a strong performance in FY24; increased competition from Light & Wonder; and given there is some ground to be covered before the company hits its interactive revenue targets.
Goldman Sachs expects North American Gaming will continue to drive the bulk of profits and considers the company's slow decline in A&NZ to be expected given its "unsustainable" market share of more than 75%.
The company has announced a strategic review of its Pixel United businesses and the broker suspects a spin-off could be in the wings.
This report was published on July 10, 2024.
Target price is $55.30 Current Price is $52.39 Difference: $2.91
If ALL meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $55.05, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 89.10 cents and EPS of 239.30 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 237.0, implying annual growth of 6.5%.
Current consensus DPS estimate is 72.6, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 22.1.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 116.40 cents and EPS of 264.50 cents.
At the last closing share price the estimated dividend yield is 2.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.81.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 260.4, implying annual growth of 9.9%.
Current consensus DPS estimate is 80.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 20.1.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANG AUSTIN ENGINEERING LIMITED
Mining Sector Contracting - Overnight Price: $0.64
Petra Capital rates ((ANG)) as Buy (1) -
Petra Capital remains positive on Austin Engineering despite the share price rise and the analyst doesn't consider the valuation as stretched.
The outlook for its product demand remains strong due to firm commodity prices and increasing mine strip ratios, the broker highlights.
The Austin 2.0 cost out initiative coincides with elevated mining activity, which Petra Capital believes will result in an earnings upgrade cycle.
Revised revenue projections for FY24-FY26 reflect higher order inflows and improved operating efficiencies and the analyst raises EPS forecasts by 7% for FY25.
Buy rating and the target price is lifted to 67c from 60c.
This report was published on July 11, 2024.
Target price is $0.67 Current Price is $0.64 Difference: $0.03
If ANG meets the Petra Capital target it will return approximately 5% (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 1.50 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.31.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 2.50 cents and EPS of 6.70 cents.
At the last closing share price the estimated dividend yield is 3.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.55.
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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