Daily Market Reports | Jan 29 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.
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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)
A11 A2M ANZ AZJ (2) BBN BEN BOQ BXB CBA COE (3) CRN CSL CWY IEL ILU (2) LNW LTR (2) LYC (2) MAQ (2) MHJ MTO NAB PNV QAN QBE QUB S32 WBC WHC
A11 ATLANTIC LITHIUM LIMITED.
New Battery Elements - Overnight Price: $0.35
Wilsons rates ((A11)) as Overweight (1) -
Piedmont Lithium ((PLL)) has announced it has sold 24.3m shares of Atlantic Lithium for an equivalent 48cps, representing approximately 3.9% of Atlantic’s outstanding shares.
Atlantic remains Wilsons' top pick amongst its lithium developers coverage. The project has already been significantly de-risked, the broker opines.
The broker expects project construction milestones over the next 12 months to act as catalysts for re-rating as production moves closer.
Potential finalisation of an offtake arrangement for Atlantic’s 50% share of Ewoyaa production will likely be a key catalyst, the broker suggests. Overweight and 95c target retained.
This report was published on January 22, 2024.
Target price is $0.95 Current Price is $0.35 Difference: $0.6
If A11 meets the Wilsons target it will return approximately 171% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 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 87.50.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $4.62
Jarden rates ((A2M)) as Upgrade to Overweight from Neutral (2) -
2023 China newborns were 9m; better than expected. Prior to this, a leaked pre-release which suggested 7.88m, down -18% year on year, had been more broadly in line with Jarden's expectation.
Looking forward, the broker was already expecting a tick up in 2024 driven by improved marriage data, vaccination fears fading and a stronger zodiac sign with the year of the Dragon.
With comfort birth rates are slightly better as a starting point, a2 Milk Co executing its new China label transition well and its supply chain priority/lower forward incremental returns better understood, Jarden upgrades to Overweight from Neutral.
Target rises to NZ$5.15 from NZ$4.95.
This report was published on January 22, 2024.
Current Price is $4.62. Target price not assessed.
Current consensus price target is $5.33, suggesting upside of 15.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.20.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.7, implying annual growth of N/A.
Current consensus DPS estimate is 1.0, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 22.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 23.22 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.1, implying annual growth of 21.3%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 18.4.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $26.67
Jarden rates ((ANZ)) as Overweight (2) -
Jarden notes the banks have started the year strongly and the macro backdrop suggests outperformance could continue.
The broker sees intense but moderating pressure on margins and scope for lower bad debts, with capital positions solid.
ANZ Bank updates will likely be limited to capital and credit quality, Jarden suggests. In late December, ANZ noted no material increase in bad debts while markets income was strong.
Target rises to $26.50 from $24.80, Overweight retained.
This report was published on January 22, 2024.
Target price is $26.50 Current Price is $26.67 Difference: minus $0.17 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.32, suggesting downside of -1.3%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 162.00 cents and EPS of 217.00 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 214.0, implying annual growth of -9.6%.
Current consensus DPS estimate is 161.8, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 12.5.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 164.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 6.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.80.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 224.9, implying annual growth of 5.1%.
Current consensus DPS estimate is 160.8, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 11.9.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZJ AURIZON HOLDINGS LIMITED
Transportation & Logistics - Overnight Price: $3.72
Goldman Sachs rates ((AZJ)) as Neutral (3) -
Goldman Sachs has updated its half-year 2024 estimates for Aurizon Holdings to reflect the latest trends. Factoring in Network Final Allowable Revenue leads to a minor fiddling about of earnings forecasts.
The net result is a target price increase to $4.00 from $3.90. Neutral retained.
This report was published on January 22, 2024.
Target price is $4.00 Current Price is $3.72 Difference: $0.28
If AZJ meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.89, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 25.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.9, implying annual growth of 66.1%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.9.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 29.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.83.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.4, implying annual growth of 14.1%.
Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.1.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((AZJ)) as Neutral (3) -
With the transport and waste reporting season due to begin in mid-February, Jarden has reviewed its coverage and previewed first half results.
It is Jarden's view that companies with the highest earnings per share dispersion and with expanded implied price-earnings ratios since the end of financial year may be most at risk of volatile movement in their share price, namely Aurizon Holdings and Qube Holdings ((QUB)).
Aurizon Holdings received final approval from the Queensland Competition Authority in October to increase the WAA in its network business to 8.51% from FY25. Factored into Jarden's forecasts, this drives earnings per share upgrades for both FY25 and FY26.
The Neutral rating is retained and the target price increases to $3.80 from $3.70.
This report was published on January 24, 2024.
Target price is $3.80 Current Price is $3.72 Difference: $0.08
If AZJ meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $3.89, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 18.80 cents and EPS of 25.10 cents.
At the last closing share price the estimated dividend yield is 5.05%.
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 24.9, implying annual growth of 66.1%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.9.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 21.30 cents and EPS of 28.30 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.4, implying annual growth of 14.1%.
Current consensus DPS estimate is 22.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.1.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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