Australian Broker Call *Extra* Edition – Dec 06, 2023

Daily Market Reports | Dec 06 2023

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)

ARX (2)   CKF (2)   CSL   GTK   IPG   MCP   MDR   QBE   WGX   WR1  

MCP    MCPHERSON'S LIMITED

Health & Nutrition - Overnight Price: $0.46

Moelis rates ((MCP)) as Hold (3) -

Improved gross profit margins have seen McPherson's report year-on-year earnings growth to date in FY24, as per a trading update at the recent annual general. 

Moelis notes revenue year-to-date is down -7%, with core brand sales down -3.5%, impacted by supply chain issues for Dr LeWinn's which have resolved in October. The remaining four core brands all delivered growth ahead of their respective categories.

The Hold rating is retained and the target price increases to 57 cents from 51 cents.

This report was published on November 28, 2023.

Target price is $0.57 Current Price is $0.46 Difference: $0.115
If MCP meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY24:

Moelis forecasts a full year FY24 dividend of 5.40 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 11.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.58.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 6.10 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 13.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.59.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MDR    MEDADVISOR LIMITED

Healthcare services - Overnight Price: $0.21

Canaccord Genuity rates ((MDR)) as Buy (1) -

A first half trading and strategy update from MedAdvisor has renewed Canaccord Genuity's confidence in the company meeting its expectations of a stronger full year at both the top and bottom lines. 

The company is guiding to year-on-year first half revenue growth of 10-15%, with Australia and New Zealand expected to deliver 15% growth amid fee increases and the US expected to deliver 8-13% growth.

The Buy rating and target price of 39 cents are retained.

This report was published on November 28, 2023.

Target price is $0.39 Current Price is $0.21 Difference: $0.18
If MDR meets the Canaccord Genuity target it will return approximately 86% (excluding dividends, fees and charges).

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

QBE    QBE INSURANCE GROUP LIMITED

Insurance - Overnight Price: $14.77

Jarden rates ((QBE)) as Buy (1) -

QBE Insurance has confirmed its full year combined ratio outlook remains intact, despite its crop combined ratio outlook edging higher, with the insurer benefiting from benign catastrophe claims over the second half.

Adjusting for both crop and catastrophe claims, Jarden estimates the underlying combined ratio remains at 92.5% for the second half, which the broker considers a solid improvement on the 93.3% first half ratio.

The Buy rating is retained and the target decreases to $20.90 from $21.00.

This report was published on November 27, 2023.

Target price is $20.90 Current Price is $14.77 Difference: $6.13
If QBE meets the Jarden target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $17.29, suggesting upside of 17.1%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 108.66 cents and EPS of 142.62 cents.
At the last closing share price the estimated dividend yield is 7.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.36.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 137.9, implying annual growth of N/A.
Current consensus DPS estimate is 102.3, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.7.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 144.88 cents and EPS of 189.71 cents.
At the last closing share price the estimated dividend yield is 9.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 181.5, implying annual growth of 31.6%.
Current consensus DPS estimate is 125.5, implying a prospective dividend yield of 8.5%.
Current consensus EPS estimate suggests the PER is 8.1.

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


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