Daily Market Reports | 1:54 PM
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.
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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)
360 APE (3) ATA BGL (3) CDP CNI COL (2) CUV CVN CXO DDR (3) DUG EDV FPH FWD GDG (2) IEL (2) KAR (2) MAQ MEK MMI MPL (2) MTO NUC NWH OCL ORA PPM (2) PPT PTM PXA (2) QAN RHC (2) RMD SHJ SLH SNL (2) STX TPG (2) VAU WPR
360 LIFE360 INC
Software & Services - Overnight Price: $22.40
Goldman Sachs rates ((360)) as Buy (1) -
Life360 posted a fourth quarter outcome that exceeded guidance and expectations. Goldman Sachs notes a step up in marketing and investment expenditure, consistent with the company's conservative approach to setting initial guidance.
FY25 guidance is for revenue of US$450-480m and adjusted EBITDA of US$65-75m. The company has also reaffirmed aspirations for advertising revenue to match subscription revenue over the longer term.
The broker reiterates a Buy rating and raises the target to $27 from $25.
This report was published on February 28, 2025.
Target price is $27.00 Current Price is $22.40 Difference: $4.6
If 360 meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $27.16, suggesting upside of 21.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 42.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 58.8, 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 38.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 EPS of 64.21 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 56.2, implying annual growth of -4.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 39.8.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $15.01
Jarden rates ((APE)) as Neutral (3) -
Eagers Automotive's FY24 result was broadly in line with Jarden's forecasts, so the focus was mainly on revenue guidance for FY25 and margins.
The broker lifted FY25 revenue forecast following the company's guidance of a $1bn increase over FY24 from recent acquisitions; two months from Victorian Group and Alice Springs Toyota, and 10 months from Norris Group.
The analyst also raised gross profit and profit before tax margin estimates by 40-50bps, though on a y/y basis the profile is mostly flat.
The broker sees upside risks to EPS on brand mix benefits but also cautions about downside risks from election uncertainty, new emission stands and Chinese OEM supply.
Target price is $14.05 and rating is Neutral.
This report was published on February 28, 2025.
Target price is $14.05 Current Price is $15.01 Difference: minus $0.96 (current price is over target).
If APE meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.56, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 81.90 cents and EPS of 100.50 cents.
At the last closing share price the estimated dividend yield is 5.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 100.9, implying annual growth of 25.8%.
Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.7.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 84.60 cents and EPS of 103.90 cents.
At the last closing share price the estimated dividend yield is 5.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.45.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 106.1, implying annual growth of 5.2%.
Current consensus DPS estimate is 71.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.0.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Moelis rates ((APE)) as Hold (3) -
Moelis observes Eagers Automotive's FY24 result showed a stronger 2H24 in a market where new car volumes fell -5%.
The company guided to a $1bn increase in revenue in FY25 from recent acquisitions, retail JV growth and solid order bank.
The broker notes the company's order book rose 5% in January vs December which suggests the volume end of the new car market is stable.
In the short term, the broker sees headwinds from Chinese OEMs entry, federal election, PHEV changes and new vehicle efficiency standards which will keep industry-wide gross margins under pressure.
The broker raised FY25-26 EPS by 17-18% on FY25 revenue growth guidance and stabilising gross margin in FY26, following a compression in FY25.
Target price lifts to $15.23 (it was $11.51 in August). Rating retained at Hold.
This report was published on March 2, 2025.
Target price is $11.51 Current Price is $15.01 Difference: minus $3.5 (current price is over target).
If APE meets the Moelis target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.56, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 76.90 cents and EPS of 101.30 cents.
At the last closing share price the estimated dividend yield is 5.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.82.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 100.9, implying annual growth of 25.8%.
Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.7.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 82.60 cents and EPS of 107.00 cents.
At the last closing share price the estimated dividend yield is 5.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 106.1, implying annual growth of 5.2%.
Current consensus DPS estimate is 71.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.0.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((APE)) as Market Weight (3) -
Eagers Automotive's FY24 result was better-than-expected by Wilsons, with sales of $11,194m, up 14% year-on-year, although normalised profit (PBT) declined by -17% to $371m.
A modest improvement in margins (when consensus was expecting a decline), aided by disciplined opex control and higher OEM incentives, leads to upward revisions in profit margin forecasts by the broker.
The outlook for FY25 includes an additional $1.0bn in revenue growth, with resilience in the new car market supported by a strong order bank, highlight the analysts.
After raising sales and profit forecasts, the broker's target price rises to 14.99 from 10.87, reflecting improved margin confidence.
Market Weight rating retained.
This report was published on February 28, 2025.
Target price is $14.99 Current Price is $15.01 Difference: minus $0.02 (current price is over target).
If APE meets the Wilsons target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.56, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 73.70 cents and EPS of 109.10 cents.
At the last closing share price the estimated dividend yield is 4.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 100.9, implying annual growth of 25.8%.
Current consensus DPS estimate is 71.4, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.7.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 80.80 cents and EPS of 119.90 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 106.1, implying annual growth of 5.2%.
Current consensus DPS estimate is 71.2, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 14.0.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ATA ATTURRA LIMITED
Software & Services - Overnight Price: $0.87
Moelis rates ((ATA)) as Buy (1) -
Moelis notes Atturra's 1H25 result showed mixed margin performance but the profit is typically weighted to 2H.
The company's FY25 guidance implied an upgrade to $305-320m from $292m-plus stated earlier, but the broker lowered its forecast by -4.8% from a previous estimate of $322m. EBITDA forecast was also cut to align with the company's guidance.
The company ended December with over $98m in cash and $39m of undrawn debt which would support its inorganic growth focus, and according to the broker, it will offset potential industry weakness in the near term.
Target price is $1.07 and Buy rating retained.
This report was published on March 3, 2025.
Target price is $1.07 Current Price is $0.87 Difference: $0.2
If ATA meets the Moelis target it will return approximately 23% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 EPS of 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.23.
Forecast for FY26:
Moelis forecasts a full year FY26 EPS of 5.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.
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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