Daily Market Reports | 11:00 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)
AGL ALD ANZ BEN BOQ BPT (2) CBA COE (3) CU6 FMG IPL JDO KAR (2) MQG NAB ORG (2) SFR SMP STO (2) STX VEA WBC WDS (2) WEB
COE COOPER ENERGY LIMITED
Crude Oil - Overnight Price: $0.21
Goldman Sachs rates ((COE)) as Neutral (3) -
Goldman Sachs updates its forecasts for stocks under coverage in the Energy sector from available production data for the September quarter and marks-to-market for commodity prices and currency.
For commodity prices, the broker lowers its Brent crude and refining margin estimates and raises the spot LNG price forecast.
The broker's near-term Brent price forecast falls to US$70-85/bbl from US$75-90/bbl though a temporary peak at US$90/bbl is possible from potential disruptions to Iranian supply.
Goldman's JKM gas price forecast rises by 18% to US$13.5/mmbtu over the second half of 2024 and by 15% to US$12.2/mmbtu over 2025.
For Cooper Energy in the September quarter, the analysts forecast production of 1.1 mmboe, 6% above the consensus estimate.
The 25 cent target and Neutral rating are retained.
This report was published on October 14, 2024.
Target price is $0.25 Current Price is $0.21 Difference: $0.04
If COE meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $0.27, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.66 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.65.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.8, 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 26.3.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 3.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.6, implying annual growth of 225.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 8.1.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((COE)) as Overweight (2) -
Jarden maintains its US$80/bbl near-term Brent oil price forecast despite material upside and downside risks from rising tensions in the Middle East. Upside should a supply disruption occur and downside if no disruption eventuates, explain the analysts.
The broker's Brent oil price forecasts for 2025 and 2026 are also kept at US$80/bbl.
Separately, the broker notes rising market concerns about the global economic growth outlook (particularly the impact of China). Media reports Saudi Arabia is threatening to increase output has also weakened sentiment.
Regarding upcoming quarterly results for Cooper Energy, Jarden notes upside risk to FY25 production guidance due to higher average daily production rates at Orbost than previously forecast.
The Overweight rating is retained, and the target is increased to 26c from 25c.
This report was published on October 14, 2024.
Target price is $0.26 Current Price is $0.21 Difference: $0.05
If COE meets the Jarden target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $0.27, suggesting upside of 26.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 70.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.8, 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 26.3.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.6, implying annual growth of 225.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 8.1.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((COE)) as Overweight (1) -
Wilsons flags the target price for Cooper Energy is under review with the rating retained at Overweight.
The broker highlights it initiated coverage in September with expectations of an improvement in production. The company reported 1Q25 production up 17% on 4Q24 due to operational modifications at the gas plant.
Higher production by volume has also permitted increased spot price sales and higher gas sale prices over the period, the analyst notes.
This report was published on October 15, 2024.
Current Price is $0.21. Target price not assessed.
Current consensus price target is $0.27, suggesting upside of 26.2%(ex-dividends)
Forecast for FY25:
Current consensus EPS estimate is 0.8, 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 26.3.
Forecast for FY26:
Current consensus EPS estimate is 2.6, implying annual growth of 225.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 8.1.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CU6 CLARITY PHARMACEUTICALS LIMITED
Medical Equipment & Devices - Overnight Price: $6.81
Wilsons rates ((CU6)) as Overweight (1) -
Wilsons observes Clarity Pharmaceuticals' announcement for the next steps of its 64Cu-SAR-bisPSMA agent in prostate cancer post the FDA meeting.
The company and FDA have agreed on a Phase 3 trial AMPLIFY trial which will recruit 220 patients.
Wilsons also highlights the appointment of Michelle Parker as the new CEO and Dr Colin Biggin becoming the COO to concentrate more on the supply chain and manufacturing operations as the company moves closer to commercialisation.
Overweight rating retained.
This report was published on October 14, 2024.
Target price is $8.48 Current Price is $6.81 Difference: $1.67
If CU6 meets the Wilsons target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 13.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 50.82.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 39.82.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FMG FORTESCUE LIMITED
Iron Ore - Overnight Price: $20.47
Jarden rates ((FMG)) as Underweight (4) -
Jarden observes the powerhouse of earnings for Fortescue, the direct shipping of ore from Pilbara is now experiencing a decline in reserves.
The broker points to a fall of -116mt in the year ending June 30, which accumulates to a decline in reserves annually of -24% since 2018.
The decline is not a concern in isolation, but the division does generate cash for development of the energy division.
Target price $16.81 with an Underweight rating remaining.
This report was published on October 11, 2024.
Target price is $16.81 Current Price is $20.47 Difference: minus $3.66 (current price is over target).
If FMG meets the Jarden target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $18.30, suggesting downside of -10.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 194.71 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.51.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 180.1, implying annual growth of N/A.
Current consensus DPS estimate is 89.7, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 11.4.
Forecast for FY26:
Jarden forecasts a full year FY26 EPS of 104.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.68.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 169.0, implying annual growth of -6.2%.
Current consensus DPS estimate is 88.0, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 12.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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