Daily Market Reports | Feb 07 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)
ACE ARX CMM DDR HLS IDX ING MAQ OCL PER SHL SHV TLS TPG
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $0.88
Wilsons rates ((ACE)) as No Rating (-1) -
Wilsons provides some commentary around Acusensus, without including forecasts, target price or a rating in first-up research.
The company specialises in traffic management and road safety solutions, largely by using technology such as cameras and artificial intelligence. The aim is to detect distracted drivers who are illegally using mobile phones and/or those exceeding the speed limit.
Revenues arise from hardware rental or sale, software licensing and equipment installation, explains the broker. System operation and maintenance, equipment deployment services, as well as image review and verification services are additional sources of revenue.
The NSW Government first utilised the Acusensus technology in late-2019 with fatalities in the first two years of the program declining by -20%.
This report was published on February 1, 2024.
Current Price is $0.88. Target price not assessed.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARX AROA BIOSURGERY LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.56
Jarden rates ((ARX)) as Downgrade to Overweight from Buy (2) -
Jarden was left surprised by downgrades issued by Aroa Biosurgery, with the company lowering its second half revenue guidance by -17% and full year revenue guidance by -8%, despite providing previous guidance just two months ago.
As explained by the broker, the downgrade is due to an overestimation of revenue share from Tela Bio, a delay in new Tela product, and lower sales from Myriad.
On the latter point, while Jarden finds lower than expected growth in Myriad disappointing, it points out progress has been made on accounts and sales productivity and guidance of 70-85% year-on-year growth for the product is still encouraging.
The rating is downgraded to Overweight from Buy and the target price decreases to $1.00 from $1.20.
This report was published on January 31, 2024.
Target price is $1.00 Current Price is $0.56 Difference: $0.435
If ARX meets the Jarden target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.39 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 40.71.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 46.97.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CMM CAPRICORN METALS LIMITED
Gold & Silver - Overnight Price: $4.34
Jarden rates ((CMM)) as Overweight (2) -
With Capricorn Metals demonstrating a slight quarter-on-quarter production improvement, reporting production of 30,400 ounces in the December quarter from 29,700 in the September quarter, Jarden finds full year guidance of 115-125,000 ounces "comfortable".
The broker maintains a forecast at the lower end of range at 117,700 ounces, partly on commentary regarding elevated stripped scheduled for the current half.
The broker also forecasts slightly higher all-in sustaining costs of $1,399 per ounce compared to guidance of $1,270-1,370 per ounce, noting that a 20% sales increase and 3% increase in realised pricing in the December quarter drove only a 9% improvement to operating cashflow.
The Overweight rating is retained and the target price decreases to $4.78 from $4.89.
This report was published on January 30, 2024.
Target price is $4.78 Current Price is $4.34 Difference: $0.44
If CMM meets the Jarden target it will return approximately 10% (excluding dividends, fees and charges).
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 24.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.71.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 24.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.79.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DDR DICKER DATA LIMITED
Hardware & Equipment - Overnight Price: $11.27
Goldman Sachs rates ((DDR)) as Downgrade to Sell from Neutral (5) -
Goldman Sachs downgrades its rating for Dicker Data to Sell from Neutral. Based on feedback from OEM suppliers, it's thought the consensus forecast for a FY24 PC sales recovery is too high.
The analyst also cautions Networking sales may slow considerably as due to slow backlog fulfillment. Gearing levels are also considered high, with potential for a capital raise if management targets organic or inorganic growth initiatives.
Overall, the broker remains cautious on management's forward commentary during upcoming 2H results, given the tailwinds experienced during the supply-constrained post-covid period.
The $10.20 target is unchanged.
This report was published on January 29, 2024.
Target price is $10.20 Current Price is $11.27 Difference: minus $1.07 (current price is over target).
If DDR meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in December.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 44.30 cents and EPS of 25.50 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 44.20.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 49.50 cents and EPS of 50.90 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.14.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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