Daily Market Reports | Feb 12 2024
An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listedequities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.
One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)
A1M AMC ASX BWP CIP COH CSR DRR DXI ELD FBU(2) GNG LOV MTS NCK(2) PGH PME RED RGN(2)
A1M AIC MINES LIMITED
Gold & Silver - Overnight Price: $0.29
Moelis rates ((A1M)) as Initiation of coverage with Buy (1) -
Moelis initiates coverage of copper producer AIC Mines with a Buy rating and 52c target price.
The broker holds a positive view on the copper price, particularly given China's lack of meaningful copper reserves, but says it's hard graft finding a domestic small-cap exposure on the ASX. Enter AIC Mines.
The company has acquired the Eloise mine in Queensland and added the nearby Jericho deposit after purchasing Demetallica ((DRM)) early last year.
Funding and a final investment decision have been securedfor the latter project and commencementshould derisk the operation, says Moelis.
This report was published on February 7, 2024.
Target price is $0.52 Current Price is $0.29 Difference: $0.225
If A1M meets the Moelis target it will return approximately 76% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.37.
Forecast for FY25:
Moelis forecasts a full year FY25 EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.18.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMC AMCOR PLC
Paper & Packaging - Overnight Price: $14.01
Jarden rates ((AMC)) as Neutral (3) -
Amcor reported 1H24 earnings and the outlook continues to remain mixed with potential for downside risks in 2H24 saysJarden.
Management noted an improvement in January volumes, however, the broker notes this is off soft volumes in December. The quality of the 1H24 earnings also remains in question as the company reported a lower effective tax rate.
On balance, the volume outlook for FY24 has declined butmanagementretains guidance, due toimproving inventory levels and declining working capital costs.
Jarden lifts the target price to $14.40 from $14.30; a Neutral rating is maintained.
This report was published on February 7, 2024.
Target price is $14.40 Current Price is $14.01 Difference: $0.39
If AMC meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $15.41, suggesting upside of 10.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 74.42 cents and EPS of 102.76 cents.
At the last closing share price the estimated dividend yield is 5.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.63.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 105.1, implying annual growth of N/A.
Current consensus DPS estimate is 72.1, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 13.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 77.60 cents and EPS of 107.61 cents.
At the last closing share price the estimated dividend yield is 5.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 112.0, implying annual growth of 6.6%.
Current consensus DPS estimate is 74.2, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 12.5.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASX ASX LIMITED
Wealth Management & Investments - Overnight Price: $67.20
Jarden rates ((ASX)) as Neutral (3) -
ASX provided a trading update which revealed a fourth monthof double-digit futures growth in January plus a pick up in average daily volumes of 22% compared to the previous period, highlightsJarden.
However, daily market turnover fell -9% in January on the previous year and velocity declined to 61%, which is the weakest monthly result in over 10-years.
Jarden also highlights a -58% fall in capital raisings on the previous year, due to sluggish IPO activity.
Target price of $61.05 and Neutral rating maintained.
This report was published on February 6, 2024.
Target price is $61.05 Current Price is $67.20 Difference: minus $6.15 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $61.03, suggesting downside of -9.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 214.20 cents and EPS of 252.00 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 246.5, implying annual growth of 50.4%.
Current consensus DPS estimate is 212.6, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 27.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 224.90 cents and EPS of 264.60 cents.
At the last closing share price the estimated dividend yield is 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 253.5, implying annual growth of 2.8%.
Current consensus DPS estimate is 216.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.5.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BWP BWP TRUST
REITs - Overnight Price: $3.53
Moelis rates ((BWP)) as Hold (3) -
BWP Trust's December-half result metMoelis'sforecasts, posting an EPU and DPU of 9.02c. Management retained guidance.
Market rents strengthened, rising 4.2% on average, well above FY23's 1.8% growth rate. About 50% of leases are linked to CPI.
The broker appreciates the trust's under-leveraged balance sheet, gearing closing the half at 17.1%, with hedging cover sitting a 51.5%.
BWP has entered an agreement to buy Newmark REIT ((NPR)) for an implied value of $1.40 (0.4 BWP units for each NPR unit). If this proceeds, BWP's gearing should rise to 22.7%, says Moelis.
Hold rating and $3.64 target price retained.
This report was published on February 7, 2024.
Target price is $3.64 Current Price is $3.53 Difference: $0.11
If BWP meets the Moelis target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.52, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 18.30 cents and EPS of 18.30 cents.
At the last closing share price the estimated dividend yield is 5.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.9, implying annual growth of 213.5%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 19.7.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 18.70 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.5, implying annual growth of 3.4%.
Current consensus DPS estimate is 18.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 19.1.
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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