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
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)
ABG ADA ANZ AX1 (2) BEN BRE CAJ CDA (2) CGS CKF CNI DUG EDV EHL (2) EVN EXP FPH GEM GOR (2) ING IPH JIN (2) KYP MYX NHF NST (2) PBH PLS PNV RFF (2) RMS RSG SGP TLX VEA WHC
ABG ABACUS GROUP
REITs - Overnight Price: $1.20
Moelis rates ((ABG)) as Buy (1) -
Abacus Group reported higher than forecast earnings in FY24, comments Moelis, with improved leasing boosting office occupancy to 93.4%, up from 92.6% in February.
The group's retail assets continued to perform well. Like-for-like sales advanced 6.3%, from around 3.8% in FY23.
Some $30.6m in income was generated including distribution, management and development fees from the 19.8% stake in Abacus Storage King ((ASK)), the broker observes.
Buy rated. Target price $1.45.
This report was published on August 25, 2024.
Target price is $1.45 Current Price is $1.20 Difference: $0.25
If ABG meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $1.23, suggesting upside of 2.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 8.50 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 7.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.6, implying annual growth of N/A.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 14.0.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 8.60 cents and EPS of 9.30 cents.
At the last closing share price the estimated dividend yield is 7.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.0, implying annual growth of 4.7%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 13.3.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADA ADACEL TECHNOLOGIES LIMITED
Software & Services - Overnight Price: $0.45
Taylor Collison rates ((ADA)) as Upgrade to Speculative Buy (1) -
Despite Adacel Technologies' disappointing FY24 result, Taylor Collison retains the faith, positing the company offers an asymmetric opportunity for investors related to the resubmission decision by the Federal Aviation Authority for Training Simulator Software, which the broker believes will be reawarded to Adacel.
The broker considers the company to be heavily undervalued by the market and observes any new contract wins will scale sharply on the company's stable cost base.
Highlights from the FY24 result included the write down of -$1.9m of intangibles, which triggered a -$1.4m EBITDA loss versus the broker's forecast $1m profit.
Cash flow in the June half also disappointed due to the increase in inventory arising from the initial award of the contract, but the broker expects the build to unwind through FY25.
The big negative was downgraded FY25 guidance to $4m to $5m from $6m to $8m at the December half result as customers opted not to take up extra work.
Rating is upgraded to Speculative Buy from Outperform/Accumulate.
This report was published on August 26, 2024.
Current Price is $0.45. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.75.
Forecast for FY26:
Taylor Collison forecasts a full year FY26 dividend of 2.60 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 5.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.52.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $29.62
Goldman Sachs rates ((ANZ)) as Buy (1) -
Due to increased concerns around ANZ Bank's non-financial risk management, APRA has raised the capital add-on to the bank to $750m, a $250m increase.
Goldman Sachs notes the additional expense is 6 basis point of CET1 and the add-on will remain until ANZ Bank has conducted the required remediation to the regulator's satisfaction.
The broker is not surprised by the move given recent details on issues concerning APRA. CommBank ((CBA)) is the only major bank without a capital overlay.
Target price moves to $29.45 from $29.48. Buy rating unchanged.
This report was published on August 23, 2024.
Target price is $29.45 Current Price is $29.62 Difference: minus $0.17 (current price is over target).
If ANZ meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $27.07, suggesting downside of -8.6%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 166.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.11.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 224.5, implying annual growth of -5.2%.
Current consensus DPS estimate is 164.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.2.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 166.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 5.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.11.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 216.2, implying annual growth of -3.7%.
Current consensus DPS estimate is 166.8, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.7.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AX1 ACCENT GROUP LIMITED
Apparel & Footwear - Overnight Price: $2.03
Petra Capital rates ((AX1)) as Buy (1) -
Accent Group delivered underlying FY24 earnings that were in line with the July update and Petra Capital notes trading improved in the second half with like-for-like sales of 4.1%. This positive momentum has continued into the first half with the first seven weeks of like-for-like sales up 3.5%.
The upside risks to forecasts are now less than previously believed, and the broker comments like-for-like sales need to rise above 3-4% to drive re-leveraging, while loss-making Glue stores will still drag.
That said, the broker believes its forecasts remain on the conservative side and retains a Buy rating with a $2.35 target.
This report was published on August 26, 2024.
Target price is $2.35 Current Price is $2.03 Difference: $0.32
If AX1 meets the Petra Capital target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 18.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 13.60 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 6.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.60.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.7, implying annual growth of 38.5%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.8.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 13.90 cents and EPS of 15.40 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.4, implying annual growth of 11.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.4.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((AX1)) as Overweight (1) -
After a strong sales recovery in the 2H of FY24, Wilsons highlights ongoing momentum for Accent Group in early-FY25. There was a 58bps rise in gross margin to 55.8% in FY24 and the group opened 74 net new stores in FY24.
Management expects to open at least 50 new stores, underpinned by Nude Lucy (now 36 stores) and Stylerunner (28 stores trading, and 10 stores planned for FY25). The broker forecasts 55 gross new stores and 27 net new stores in FY25.
The Overweight rating is unchanged with Wilsons expecting material upside to the current share price. Target price falls to $2.40 from $2.50.
This report was published on August 26, 2024.
Target price is $2.40 Current Price is $2.03 Difference: $0.37
If AX1 meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.41, suggesting upside of 18.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 12.00 cents and EPS of 15.10 cents.
At the last closing share price the estimated dividend yield is 5.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.7, implying annual growth of 38.5%.
Current consensus DPS estimate is 12.9, implying a prospective dividend yield of 6.4%.
Current consensus EPS estimate suggests the PER is 13.8.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 15.20 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 7.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.68.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.4, implying annual growth of 11.6%.
Current consensus DPS estimate is 14.6, implying a prospective dividend yield of 7.2%.
Current consensus EPS estimate suggests the PER is 12.4.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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