Daily Market Reports | Sep 04 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.
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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)
29M (2) ACE ADH (2) AGN APA AQZ BRE BSA CAA CLG COE (4) COL CTT CUV CXL CYL EML EMN EOS (2) FLT (2) FMG FWD GDG GLN GMD GNG GTN HLO IDX (2) IEL (2) IGO (2) ING IPD IPG JLG KAR (2) KGN KLS KYP LOT LOV (2) LRK M7T MAC (2) MAQ (4) MDR NIC NWC (2) NXD NXT PDN PLS PPM (2) PPS PPT PSQ PTM QAN (2) QOR RDY (2) RED RMC RMS RSG S32 (2) SDF (2) SDR (2) SFR (3) SGF SMR SNL SOM SPZ (2) TAH THL TRJ UBN USL VSL WDS WEB (2) WES WGX WOR WOW
29M 29METALS LIMITED
Copper - Overnight Price: $0.36
Canaccord Genuity rates ((29M)) as Sell (5) -
29Metals delievered a first half result that beat Canaccord Genuity's expectations yet the balance sheet deteriorated during the half year, with the cash balance nearly halving and net debt increasing by 140%.
The broker believes the balance sheet remains stretched despite a US$50m offtake finance facility with Glencore, considering Golden Grove requires capital and failed to deliver strong cash flow and Capricorn Copper needs support for C&M activities.
Sell rating retained. Target edges down to $0.32 from $0.34.
This report was published on August 27, 2024.
Target price is $0.32 Current Price is $0.36 Difference: minus $0.04 (current price is over target).
If 29M meets the Canaccord Genuity target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.53, suggesting upside of 51.4%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.60.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -11.1, 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 N/A.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.6, 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 21.9.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((29M)) as Underweight (4) -
29Metals disclosed a messy set of first half accounts, Jarden suggests, impacted by the decision again to suspend operations and take further impairments at Capricorn Copper.
Pleasingly for the broker, Golden Grove delivered positive earnings, supported by improved production and favourable copper and zinc prices, highlighting the potential of the asset at elevated base metal prices.
Addressing the balance sheet is likely to remain a priority, Jarden notes, with a restart of Capricorn unlikely in the near term. Underweight and 33c target retained in recognition of forecast ongoing cash burn and the potential for equity dilution.
This report was published on September 2, 2024.
Target price is $0.33 Current Price is $0.36 Difference: minus $0.03 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.53, suggesting upside of 51.4%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 10.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.53.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -11.1, 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 N/A.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.6, 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 21.9.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $0.68
Canaccord Genuity rates ((ACE)) as Buy (1) -
Acusensus posted FY24 results that were in line with expectations with revenue growth of 18% and gross profit growth of 22%.
Canaccord Genuity found the outlook positive, with FY25 expected to show high revenue growth in the US and UK amid more modest growth in the Australian business.
The balance sheet strength and "land grab opportunity" provides the business with a first mover advantage and Canaccord Genuity retains a Buy rating and $1.30 target.
This report was published on August 27, 2024.
Target price is $1.30 Current Price is $0.68 Difference: $0.62
If ACE meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 48.57.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 75.56.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $2.01
Jarden rates ((ADH)) as Neutral (3) -
Adairs' profit beat consensus, Jarden reports. A miss on gross profit margin was offset by beats on sales and cost of doing business. However a soft sales trading update was weak given Adairs is cycling comps of -8.9% year on year.
Mocka NZ dragged the group down with sales down -15.7% while Australian Mocka sales were up 4.6%.
FY25 gross store rollout guidance is nine but Adairs expects to close -5-8 stores, implying 1-4 net stores, and compares to consensus net store growth of six, the broker notes.
Target falls to $2.04 from $2.09, Neutral retained.
This report was published on August 28, 2024.
Target price is $2.04 Current Price is $2.01 Difference: $0.03
If ADH meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $2.10, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 22.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.82.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.5, implying annual growth of 14.3%.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.6.
Forecast for FY26:
Jarden forecasts a full year FY26 EPS of 26.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.70.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 26.0, implying annual growth of 26.8%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 7.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((ADH)) as Market Weight (3) -
The FY24 Adairs earnings fell -17% year-on-year but were 7% better than consensus, Wilsons highlights.
The broker liked cost of doing business was well controlled, down -2% over the year and net debt fell -14%.
The first eight weeks of FY25 revealed ongoing softness in the trading update.
Market weight remains. Target price shifts down -3% to $1.95.
This report was published on August 29, 2024.
Target price is $1.95 Current Price is $2.01 Difference: minus $0.06 (current price is over target).
If ADH meets the Wilsons target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.10, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 14.00 cents and EPS of 19.60 cents.
At the last closing share price the estimated dividend yield is 6.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.26.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.5, implying annual growth of 14.3%.
Current consensus DPS estimate is 13.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.6.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 18.00 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 8.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 26.0, implying annual growth of 26.8%.
Current consensus DPS estimate is 17.0, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 7.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AGN ARGENICA THERAPEUTICS LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.80
Petra Capital rates ((AGN)) as Buy (1) -
A FY24 net loss of -$5.5m for Argenica Therapeutics beat the -$5.9m expected by Petra Capital due to lower-than-forecast R&D costs. It's felt a portion of the Phase 2 stroke trial costs and grant-funded pre-clinical spend have been pushed out to FY25/26.
The cash balance of $15.9m was in line with the broker's estimate and should enable funding through to key stroke trial results.
A Data Safety Monitoring Board (DSMB) review and enrolment update is imminent and could potentially corroborate the analyst's view management's enrolment guidance is conservative.
The target rises to $1.14 from $1.00. Buy.
This report was published on August 30, 2024.
Target price is $1.14 Current Price is $0.80 Difference: $0.34
If AGN meets the Petra Capital target it will return approximately 42% (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 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.56.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 34.78.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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