Daily Market Reports | Feb 14 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)
ALL BSL BWP CGC CIP COH CRD GDF HUB MPL NDO NHF SUN TCL TWE
NDO NIDO EDUCATION LIMITED
Childcare - Overnight Price: $0.97
Moelis rates ((NDO)) as Buy (1) -
Nido Education has established a $67m debt facility with National Australia Bank ((NAB)) to provide sufficient capital to allow the company to acquire new centres through its incubator program over the medium-term.
As per Moelis, the new debt facility lowers the company's cost of debt, and the broker has lifted its earnings per share forecasts 10% and 8% for 2024 and 2025 respectively.
The broker sees this as an important milestone for Nido Education, leaving the company well positioned to execute on its incubator growth strategy.
The Buy rating is retained and the target price increases to $1.40 from $1.34.
This report was published on February 12, 2024.
Target price is $1.40 Current Price is $0.97 Difference: $0.43
If NDO meets the Moelis target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.86.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 5.90 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 6.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.13.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NHF NIB HOLDINGS LIMITED
Insurance - Overnight Price: $8.10
Goldman Sachs rates ((NHF)) as Buy (1) -
Goldman Sachs is expecting a profit of $100.3m and a dividend of 14.4cps when nib Holdings releases 1H results on February 26 (according to the FNArena calendar).
After marking-to-market and allowing for investment returns over the period, the broker's target rises to $8.50 from $8.40. The Buy rating is unchanged.
The analysts note industry policyholder growth and participation remained strong through the September 2023 quarter, and expect a similar outcome for the December quarter.
This report was published on February 9, 2024.
Target price is $8.50 Current Price is $8.10 Difference: $0.4
If NHF meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $8.28, suggesting upside of 3.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 31.30 cents and EPS of 42.60 cents.
At the last closing share price the estimated dividend yield is 3.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 46.0, implying annual growth of 11.1%.
Current consensus DPS estimate is 30.6, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 17.4.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 30.90 cents and EPS of 46.00 cents.
At the last closing share price the estimated dividend yield is 3.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.61.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 48.5, implying annual growth of 5.4%.
Current consensus DPS estimate is 31.2, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 16.5.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SUN SUNCORP GROUP LIMITED
Insurance - Overnight Price: $14.40
Jarden rates ((SUN)) as Buy (1) -
Jarden analysts have used a general preview on insurers and diversified financials to amend forecasts for Suncorp Group, which has pushed up the price target to $15.25 from $15.10.
Buy rating retained.
This report was published on February 8, 2024.
Target price is $15.25 Current Price is $14.40 Difference: $0.85
If SUN meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $15.39, suggesting upside of 6.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 106.20 cents.
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 109.3, implying annual growth of 20.2%.
Current consensus DPS estimate is 75.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 13.2.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 100.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.36.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 111.3, implying annual growth of 1.8%.
Current consensus DPS estimate is 82.6, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.9.
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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