Daily Market Reports | Feb 02 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ANZ AUB BPT CCP CPU CXO (3) DMP KGN (2) MIN NST (3) PDN PLS (3) PRU RMD SDF STO WDS (2)
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $26.92
Jarden rates ((ANZ)) as Overweight (2) -
Jarden considers the potential for net interest margin pressure and lower earnings from faster US interest rate cuts for ANZ Bank.
However, the analyst commends ANZ on the turnaround in its Institutional Bank and the growth in the "Payments and Cash Management" business.
On balance, Jarden lowers FY25 and FY26 EPS by -1.9% and -1.6%,respectively, as Federal Reserve Bank cuts trim NIM estimates by -3 basis points in 2H24 and -17 basis points in 2H25.
The target price is lowered marginally to $26.30 from $26.50 and an Overweight rating maintained.
This report was published on January 24, 2024.
Target price is $26.30 Current Price is $26.92 Difference: minus $0.62 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.32, suggesting downside of -2.2%(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 215.00 cents.
At the last closing share price the estimated dividend yield is 6.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.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 6.0%.
Current consensus EPS estimate suggests the PER is 12.6.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 163.00 cents and EPS of 221.00 cents.
At the last closing share price the estimated dividend yield is 6.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.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 12.0.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AUB AUB GROUP LIMITED
Insurance - Overnight Price: $29.99
Goldman Sachs rates ((AUB)) as Buy (1) -
Goldman Sachs upgrades the price target for AUB Group to $32 from $31 ahead of the 1H24 earnings results on Tuesday 20th.
The broker prefers AUB Group over Steadfast, based on the valuation and upside potential to the target price, given the perceived "conservative" guidance and debt restructuring announcement.
AUB's FY24 UNPAT guidance stands at $154m-$164m.
Acquisition led growth potential remains and Goldmans highlights tailwinds for the industry from premium rate rises, steady commission rates and ongoing strong organic growth for the first 6 months of calendar 2024.
The Buy rating is unchanged and the target lifted to $32 from $31.
This report was published on January 25, 2024.
Target price is $32.00 Current Price is $29.99 Difference: $2.01
If AUB meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $34.16, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 82.00 cents and EPS of 150.40 cents.
At the last closing share price the estimated dividend yield is 2.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 150.5, implying annual growth of 130.3%.
Current consensus DPS estimate is 81.9, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.9.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 95.00 cents and EPS of 166.30 cents.
At the last closing share price the estimated dividend yield is 3.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 166.8, implying annual growth of 10.8%.
Current consensus DPS estimate is 91.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 18.0.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BPT BEACH ENERGY LIMITED
Crude Oil - Overnight Price: $1.67
Jarden rates ((BPT)) as Overweight (2) -
Beach Energy's December quarter trading update, "cleared the decks" for the start of the new CEO/MD Brett Woods, notes Jarden.
A material non-cash impairment for the completion of the arbitration with Origin Energy ((ORG)) over the Otway gas contract was a minor negative to the FY24 guidance, highlights the analyst.
Jarden points to the results as mixed and envisages the market may require time to absorb the updates, including the surprise Waitsia LNG cargo sale before the completion of the gas plant.
An Overweight rating is retained with a $1.80 target price.
This report was published on January 25, 2024.
Target price is $1.80 Current Price is $1.67 Difference: $0.13
If BPT meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $1.81, suggesting upside of 8.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 3.00 cents and EPS of 14.10 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.84.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.9, implying annual growth of -3.9%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 9.9.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 11.00 cents and EPS of 25.60 cents.
At the last closing share price the estimated dividend yield is 6.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.4, implying annual growth of 68.0%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 5.9.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CCP CREDIT CORP GROUP LIMITED
Business & Consumer Credit - Overnight Price: $18.17
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 $18.17 Difference: $1.83
If CCP meets the Canaccord Genuity target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $17.76, suggesting downside of -2.2%(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 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 75.1, implying annual growth of -44.0%.
Current consensus DPS estimate is 53.3, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 24.2.
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 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 133.5, implying annual growth of 77.8%.
Current consensus DPS estimate is 68.3, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 13.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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