Australian Broker Call *Extra* Edition – Dec 04, 2024

Daily Market Reports | Dec 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.

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)

BBT   BRI   DDR   DJW   FPH   IAG   IPG   MYX   ORA   SHV   SNL   SOM   WHF  

SNL    SUPPLY NETWORK LIMITED

Automobiles & Components - Overnight Price: $32.18

Goldman Sachs rates ((SNL)) as Buy (1) -

Goldman Sachs highlights Supply Networks 1H25 guidance exceeds both its estimates and those of consensus.

Management expects revenue of $170m, up by 17% year-on-year, and net profit of $19.520m, representing a 29% increase excluding a $400,000 property sale gain.

The broker attributes this growth to strong customer engagement and gains in the medium and large fleet market. Management expects revenue growth to moderate to 14% in line with historical levels, supported by branch expansions and a growing parts catalogue.

Goldman Sachs raises FY25-27 profit forecasts by between 2-6%, driven by upgrades to revenue and gross margin expansion. The target price increases to $34.20 from $30.50, and the Buy rating is maintained.

This report was published on November 29, 2024.

Target price is $34.20 Current Price is $32.18 Difference: $2.02
If SNL meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY25:

Goldman Sachs forecasts a full year FY25 dividend of 65.00 cents and EPS of 94.00 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.23.

Forecast for FY26:

Goldman Sachs forecasts a full year FY26 dividend of 77.00 cents and EPS of 110.00 cents.
At the last closing share price the estimated dividend yield is 2.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.25.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SOM    SOMNOMED LIMITED

Medical Equipment & Devices - Overnight Price: $0.43

Wilsons rates ((SOM)) as Upgrade to Overweight from Market Weight (1) -

SomnoMed is upgraded to Overweight from Market Weight with a higher target price of 45c by Wilsons.

Management announced an upgrade in FY25 guidance to around $105m in revenue and over $7m in earnings at the AGM, resulting from "de-risking" manufacturing in Manila, which freed up a 30% increase in sustainable capacity.

The analyst explains that this intervention has allowed the company to meet the order backlog and recapture previously lost customers from 2H24.

Wilsons sees the positive flow-on impacts as enabling SomnoMed to consider winding back its promotions and possibly implementing a slight price rise in 2H25.

Overweight rated. Target price: 45c.

This report was published on December 3, 2024.

Target price is $0.45 Current Price is $0.43 Difference: $0.02
If SOM meets the Wilsons target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 107.50.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 86.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WHF    WHITEFIELD INDUSTRIALS LIMITED

Wealth Management & Investments - Overnight Price: $5.64

Taylor Collison rates ((WHF)) as Initiation of coverage with Outperform (2) -

Taylor Collison initiates coverage of Whitefield Industrials with an Outperform rating, noting it is suitable for investors seeking a professionally managed stock portfolio with no exposure to resource companies.

The manager has delivered performance exceeding the ASX 200 Industrials over the past ten years, including franking, while maintaining or increasing the dividend during this period.

The broker states Whitefield Industrials is a listed investment company that offers benefits to investors compared to ETFs and unlisted pooled funds, such as capital gains treatments, dividend reinvestment plans, buybacks, and dividend substitution plans.

The broker notes the company is trading at a discount of around -10.15%, which is viewed as favourably priced.

This report was published on November 27, 2024.

Current Price is $5.64. Target price not assessed.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.

This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.