Daily Market Reports | Apr 20 2023
This story features AIR NEW ZEALAND LIMITED, and other companies. For more info SHARE ANALYSIS: AIZ
An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listed equities.
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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)
AIZ AMA BXB ELD EML IPD (2) IPH LAU TCL TLX
AIZ AIR NEW ZEALAND LIMITED
Transportation & Logistics – Overnight Price: $0.70
Jarden rates ((AIZ)) as Overweight (2) –
Jarden suspects Air New Zealand will beat current guidance. In the second half to date, load factor and RASK (revenue per average seat kilometre) are close to record levels. The broker lifts forecasts for pre-tax profit by 11% to NZ$553m.
Recent oil price volatility is expected to have a limited impact on fuel guidance, given the likely hedge profile. Consumer confidence may be low and the macro outlook fragile but the broker notes momentum is strong. Target is reduced to NZ$0.85 from NZ$0.87. Overweight.
This report was published on April 18, 2023.
Current Price is $0.70. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 3.01 cents and EPS of 11.03 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.39.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 4.83 cents and EPS of 7.75 cents.
At the last closing share price the estimated dividend yield is 6.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.10.
This company reports in NZD. 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
AMA AMA GROUP LIMITED
Automobiles & Components – Overnight Price: $0.16
Canaccord Genuity rates ((AMA)) as Buy (1) –
AMA Group's March-quarter trading update appears to have pleased Canaccord Genuity, but management sharply downgraded FY23 earnings (Ebitda) guidance to reflect rising labour costs and broader inflation.
On the upside, the company reported positive operating cash flow fo $0.3m (a continued turnaround), despite a -$11.7m outflow relating to interest and finance costs.
The company closed the quarter with $20.5m in cash – which should cover June-quarter operations, says the broker, targeting a $12.5m cash balance at the close of the June financial year.
Canaccord Genuity believes the long-term thesis remains intact and retains a Speculative Buy rating. Target price falls to 24c from 30c.
This report was published on April 18, 2023.
Target price is $0.24 Current Price is $0.16 Difference: $0.08
If AMA meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 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 8.00.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BXB BRAMBLES LIMITED
Transportation & Logistics – Overnight Price: $13.91
Jarden rates ((BXB)) as Overweight (2) –
A strong price environment continued over the March quarter which Jarden assesses is a positive indicator for the update expected on April 20. The broker believes Brambles can capitalise on discounted lumber prices to improve free cash flow.
Meanwhile, freight and diesel costs continue to normalise which should provide a tailwind to margins into the fourth quarter.
The Overweight rating and $13.15 target are maintained.
This report was published on April 17, 2023.
Target price is $13.15 Current Price is $13.91 Difference: minus $0.76 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $13.98, suggesting upside of 0.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 EPS of 70.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.87.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 81.5, implying annual growth of N/A.
Current consensus DPS estimate is 42.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 17.1.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 72.51 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 89.2, implying annual growth of 9.4%.
Current consensus DPS estimate is 48.0, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 15.6.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ELD ELDERS LIMITED
Agriculture – Overnight Price: $8.30
Goldman Sachs rates ((ELD)) as Buy (1) –
Goldman Sachs removes Elders from its conviction list although maintains a Buy rating. The stock has underperformed since the FY22 financial report.
The broker believes this is driven by the view that peak cycle earnings have passed and a downturn in rural markets is likely following three strong years. The stock has de-rated, which the broker believes is now overdone. Target is reduced to $13.20 from $18.40.
This report was published on April 17, 2023.
Target price is $13.20 Current Price is $8.30 Difference: $4.9
If ELD meets the Goldman Sachs target it will return approximately 59% (excluding dividends, fees and charges).
Current consensus price target is $11.82, suggesting upside of 42.4%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 47.00 cents and EPS of 93.00 cents.
At the last closing share price the estimated dividend yield is 5.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 88.6, implying annual growth of -14.9%.
Current consensus DPS estimate is 51.3, implying a prospective dividend yield of 6.2%.
Current consensus EPS estimate suggests the PER is 9.4.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 52.00 cents and EPS of 103.00 cents.
At the last closing share price the estimated dividend yield is 6.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 82.1, implying annual growth of -7.3%.
Current consensus DPS estimate is 49.4, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 10.1.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EML EML PAYMENTS LIMITED
Business & Consumer Credit – Overnight Price: $0.81
Wilsons rates ((EML)) as Underweight (5) –
EML Payments has announced a strategic review and appointed a new CEO. The company will focus on key priorities away from the long-range strategy.
Priorities include remediation, cost optimisation, growth in the core business and talent retention. Wilsons puts earnings forecasts under review while retaining an Underweight rating and 42c target.
This report was published on April 17, 2023.
Target price is $0.42 Current Price is $0.81 Difference: minus $0.395 (current price is over target).
If EML meets the Wilsons target it will return approximately minus 48% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.58.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 116.43.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IPD IMPEDIMED LIMITED
Medical Equipment & Devices – Overnight Price: $0.12
Canaccord Genuity rates ((IPD)) as Buy (1) –
ImpediMed's March-quarter result met Canaccord Genuity's tempered expectations.
The company managed to pass through a 33% average monthly licence fee increase across its US contract renewals, and 12 Sozo units were added in the quarter (weaker than previous quarters), taking the total base to more than 950.
Operating cash outflow met guidance thanks to the company's cost program and the broker estimates closing cash of $21.4 should provide a decent operational runway.
The big ticket item now is last March's NCCN inclusion of ImpediMed's measurement tool for lymphoedema in cancer patients and Canaccord Genuity says updates so far have been positive, management targeting 6,000 hospitals (with a tighter target of the 1600 cancer centres).
Buy rating and 18c target price retained.
This report was published on April 18, 2023.
Target price is $0.18 Current Price is $0.12 Difference: $0.06
If IPD meets the Canaccord Genuity target it will return approximately 50% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.23.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((IPD)) as Overweight (1) –
ImpediMed's March quarter results were consistent with expectations, Wilsons notes. The broker now looks ahead for more updates on private payor coverage policies and the commercial roll-out of Sozo devices.
Wilsons retains an Overweight rating and 23c target.
This report was published on April 17, 2023.
Target price is $0.23 Current Price is $0.12 Difference: $0.11
If IPD meets the Wilsons target it will return approximately 92% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.33.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.14.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IPH IPH LIMITED
Legal – Overnight Price: $8.20
Goldman Sachs rates ((IPH)) as Neutral (3) –
IPH has quantified the preliminary financial implications of the cyber breach which include one-off costs of -$2-2.5m as well as a service charge shortfall of around $4.4m in March.
Goldman Sachs adjusts estimates accordingly and also takes the opportunity to refresh FX estimates.
It remains unclear if the breach will have a lasting impact on the company's competitive profile but the broker interprets the swift response to mean there should be little lasting impact. Neutral rating and $10.45 target maintained.
This report was published on April 17, 2023.
Target price is $10.45 Current Price is $8.20 Difference: $2.25
If IPH meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $10.74, suggesting upside of 30.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 31.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 42.8, implying annual growth of 77.7%.
Current consensus DPS estimate is 31.7, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 19.2.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 35.00 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.45.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 44.9, implying annual growth of 4.9%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 18.3.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LAU LINDSAY AUSTRALIA LIMITED
Transportation & Logistics – Overnight Price: $1.31
Wilsons rates ((LAU)) as Overweight (1) –
Lindsay Australia has substantially upgraded FY23 EBITDA guidance, by 26% to $85-90m. The company has flagged strong demand for its transport business, driven by the collapse of Scott's Logistics and the exit of smaller operators.
Wilsons raises estimates for FY23-25 by 10-19%, noting that, by acquiring a material portion of the Scott's fleet at a discount, the company has captured the supply dynamics. Overweight maintained. Target is lifted to $1.51 from $1.35.
This report was published on April 17, 2023.
Target price is $1.51 Current Price is $1.31 Difference: $0.195
If LAU meets the Wilsons target it will return approximately 15% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 4.90 cents and EPS of 11.80 cents.
At the last closing share price the estimated dividend yield is 3.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.14.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 6.60 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 5.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.04.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TCL TRANSURBAN GROUP LIMITED
Infrastructure & Utilities – Overnight Price: $14.74
Goldman Sachs rates ((TCL)) as Sell (5) –
Transurban Group's traffic update for the third quarter shows all jurisdictions increased 12-15%. Some disruptions occurred, associated with ongoing construction activities in the wider Sydney network and planned work in Melbourne and Montreal.
Goldman Sachs still considers the valuation full and the Sell rating and $13.50 target are unchanged.
This report was published on April 17, 2023.
Target price is $13.50 Current Price is $14.74 Difference: minus $1.24 (current price is over target).
If TCL meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $14.53, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 58.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 3.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 105.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.6, implying annual growth of 3275.0%.
Current consensus DPS estimate is 57.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 68.2.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 63.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 4.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.55.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.2, implying annual growth of 39.8%.
Current consensus DPS estimate is 61.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 48.8.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TLX TELIX PHARMACEUTICALS LIMITED
Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $9.37
Jarden rates ((TLX)) as Buy (1) –
Jarden was impressed with the quarterly results from Telix Pharmaceuticals, particularly as there was increased competition from Novatis. ILLUCCIX sales maintained momentum and should deliver a beat to consensus expectations for the first half.
The broker expects investors will focus on the top line and this should mean the shares are well supported. Buy rating and $8.78 target maintained.
This report was published on April 17, 2023.
Target price is $8.78 Current Price is $9.37 Difference: minus $0.59 (current price is over target).
If TLX meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in December.
Forecast for FY23:
Jarden forecasts a full year FY23 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 91.86.
Forecast for FY24:
Jarden forecasts a full year FY24 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 374.80.
Market Sentiment: 1.0
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.
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CHARTS
For more info SHARE ANALYSIS: AIZ - AIR NEW ZEALAND LIMITED
For more info SHARE ANALYSIS: AMA - AMA GROUP LIMITED
For more info SHARE ANALYSIS: BXB - BRAMBLES LIMITED
For more info SHARE ANALYSIS: ELD - ELDERS LIMITED
For more info SHARE ANALYSIS: EML - EML PAYMENTS LIMITED
For more info SHARE ANALYSIS: IPD - IMPEDIMED LIMITED
For more info SHARE ANALYSIS: IPH - IPH LIMITED
For more info SHARE ANALYSIS: LAU - LINDSAY AUSTRALIA LIMITED
For more info SHARE ANALYSIS: TCL - TRANSURBAN GROUP LIMITED
For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED