Daily Market Reports | 11:09 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.
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)
ASB CKF CNB CRD DYL IAG LOT LTR MMI NXG ORG ORI PMV PNR (2) PSC QAN SKC SNT SUN
ASB AUSTAL LIMITED
Commercial Services & Supplies - Overnight Price: $3.90
Petra Capital rates ((ASB)) as Hold (3) -
Petra Capital lifted the FY25 EPS forecast for Austal by 3% but lowered FY26 by -12% after factoring in a $200m equity raise ($3.80/share) to fund around 50% of the US$300m capex for expansion of the US shipyard (FA2).
The broker cut the interest expense estimates due to the equity in the funding mix and is now forecasting a slower depreciation profile for FA2.
Target price cut to $3.77 from $4.07 but this was mainly due to a change to a blend of NTA, DCF and EV/Sales vs 1xFY25 NTA previously. Rating maintained at Hold.
This report was published on March 13, 2025.
Target price is $3.77 Current Price is $3.90 Difference: minus $0.13 (current price is over target).
If ASB meets the Petra Capital target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.43, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 4.00 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 1.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.26.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.3, implying annual growth of 248.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 27.6.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 7.00 cents and EPS of 13.50 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.1, implying annual growth of 12.6%.
Current consensus DPS estimate is 1.3, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 24.5.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CKF COLLINS FOODS LIMITED
Food, Beverages & Tobacco - Overnight Price: $8.27
Goldman Sachs rates ((CKF)) as Buy (1) -
Goldman Sachs highlights likely near-term margin improvement for Collins Foods in its KFC European operations, particularly in the Netherlands and Germany, after analysing the recent performance and outlook for peer AmRest.
The broker explains lower costs for poultry and electricity, along with increased digital adoption and operational efficiencies, are supporting profitability.
The medium-term outlook remains challenging, suggest the analysts, due to economic and geopolitical uncertainties in Europe.
Labour cost pressures and limited pricing flexibility may impact earnings, though efficiency gains and revenue management are expected to offset some of these headwinds, assesses Goldman.
Target $8.25. Buy.
This report was published on March 17, 2025.
Target price is $8.25 Current Price is $8.27 Difference: minus $0.02 (current price is over target).
If CKF meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.75, suggesting upside of 16.6%(ex-dividends)
Forecast for FY25:
Current consensus EPS estimate is 37.9, implying annual growth of -21.1%.
Current consensus DPS estimate is 22.4, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 22.1.
Forecast for FY26:
Current consensus EPS estimate is 51.9, implying annual growth of 36.9%.
Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 16.1.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CNB CARNABY RESOURCES LIMITED
Mining - Overnight Price: $0.31
Moelis rates ((CNB)) as Buy (1) -
Not much in Carnaby Resources' 1H25 result to report on for Moelis, with the broker focusing on the pre-feasibility study (PFS) due in 3Q.
The analyst expects the company to have sufficient cash to fund ongoing exploration after factoring in capital raise and acquisition.
Any material additions to inventory or developments at the Trekelano project pose an upside to the broker's production forecast.
Target price of 75c and Buy rating are unchanged. Until the PFS release, the broker expects the share price to be driven by copper price sentiment.
This report was published on March 16, 2025.
Target price is $0.75 Current Price is $0.31 Difference: $0.44
If CNB meets the Moelis target it will return approximately 142% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.56.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 6.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.84.
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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