Daily Market Reports | Feb 01 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.
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)
A11 AMA BPT BRG (2) CCP CKF COL CTD DMP EDV FLT GMD GOR HUB HVN JBH LRK M7T MAD MTS NWL PMV PPS RMD STX SUL TWE WES WOW
CCP CREDIT CORP GROUP LIMITED
Business & Consumer Credit - Overnight Price: $17.21
Canaccord Genuity rates ((CCP)) as Upgrade to Buy from Hold (1) -
Canaccord Genuity sees limited scope for a beat to first half market expectations from Credit Corp, but sees potential for improved debt purchasing conditions, a building payers book to debt ledger balance, and improved collection efficiency to "tip the scale" in Credit Corp's favour.
The broker points out the US market supply dynamic appears to be improving at pace, in contrast to the Australian and New Zealand markets. While pricing recovery is underway, it expects there is still material upside potential should market dynamics allow.
The rating is upgraded to Buy from Hold and the target price increases to $20.00 from $13.20.
This report was published on January 24, 2024.
Target price is $20.00 Current Price is $17.21 Difference: $2.79
If CCP meets the Canaccord Genuity target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $17.50, suggesting upside of 1.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 48.00 cents and EPS of 120.00 cents.
At the last closing share price the estimated dividend yield is 2.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.34.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 74.9, implying annual growth of -44.2%.
Current consensus DPS estimate is 43.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 23.0.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 67.00 cents and EPS of 134.00 cents.
At the last closing share price the estimated dividend yield is 3.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.84.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 119.1, implying annual growth of 59.0%.
Current consensus DPS estimate is 60.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 14.5.
Market Sentiment: 0.5
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: $12.10
Wilsons rates ((CKF)) as Overweight (1) -
New Zealand-based Restaurant Brands has confirmed slowing sales for its operations in Australia and Wilsons suggests the read-through for Collins Foods could translate into further and larger weakness than indicated in the November market update.
The Overweight rating is retained as well as the target price of $13.41.
This report was published on January 25, 2024.
Target price is $13.41 Current Price is $12.10 Difference: $1.31
If CKF meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $12.36, suggesting upside of 2.1%(ex-dividends)
The company's fiscal year ends in May.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 27.50 cents and EPS of 49.40 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 50.3, implying annual growth of 362.3%.
Current consensus DPS estimate is 28.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 24.1.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 35.50 cents and EPS of 59.10 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.47.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 64.8, implying annual growth of 28.8%.
Current consensus DPS estimate is 35.7, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 18.7.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
COL COLES GROUP LIMITED
Food, Beverages & Tobacco - Overnight Price: $15.91
Goldman Sachs rates ((COL)) as Sell (5) -
Prior to the February reporting season, Goldman Sachs adjusts earnings forecasts for Australian Consumer/Retail stocks under coverage in the household goods and staples space.
The analysts take into account three main themes: retail sales data suggests strength for household goods; supermarket volumes will likely remain strong; and potential for four turnaround stories.
The target for Coles Group falls by -4.8% to $14. Sell. Supermarket volumes will remain strong, given reversion to in-home dining, believes the broker.
Relative to Woolworths Group, Goldman sees a higher fixed cost spend with supply chain projects onboarding, and less ancillary revenue streams to insulate against gross profit margin pressure.
This report was published on January 25, 2024.
Target price is $14.00 Current Price is $15.91 Difference: minus $1.91 (current price is over target).
If COL meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.46, suggesting upside of 3.4%(ex-dividends)
Forecast for FY24:
Current consensus EPS estimate is 76.0, implying annual growth of -9.2%.
Current consensus DPS estimate is 63.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 20.9.
Forecast for FY25:
Current consensus EPS estimate is 82.6, implying annual growth of 8.7%.
Current consensus DPS estimate is 68.7, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 19.3.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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