Daily Market Reports | Feb 21 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
A2B ARF ASK BLX CBA COF CPU CQR DHG EVN EVT FBU HAS HDN IEL IPL MFG MGH NEU (2) NWH PGH SFX SVW TWE VCX WDS WES WOR
A2B A2B AUSTRALIA LIMITED
Transportation & Logistics - Overnight Price: $1.42
Petra Capital rates ((A2B)) as Buy (1) -
Strong interim results by A2B Australia are of little consequence, suggests Petra Capital, given the Board has unanimously recommended the Scheme of Arrangement with ComfortDelGro Corporation Australia.
This private company is set to acquire all of the remaining shares in A2B Australia it doesn’t already own, for $1.45/share.
The broker is ambivalent as to whether investors sell shares on market at the present time, or wait for the scheme to be implemented in mid-April. Petra Capital's $1.45 target aligns with the $1.45 offer price. Sell.
This report was published on February 20, 2024.
Target price is $1.45 Current Price is $1.42 Difference: $0.035
If A2B meets the Petra Capital target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 61.00 cents and EPS of 6.80 cents.
At the last closing share price the estimated dividend yield is 43.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.81.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 4.00 cents and EPS of 7.20 cents.
At the last closing share price the estimated dividend yield is 2.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.65.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARF ARENA REIT
REITs - Overnight Price: $3.46
Jarden rates ((ARF)) as Buy (1) -
Arena REIT displayed above-average growth in the 1H for funds from operations (FFO) and dividends, according to Jarden, despite rising interest rates and a slowdown in development activity.
The analysts suggest FY24 guidance could prove conservative, and this financial year could well be the nadir for EPS/DPU growth, as interest rates stabilise. Strong structural demand is also expected to accelerate inorganic growth.
The broker believes management is taking a realistic view on asset values and a disciplined approach to costs. The Overweight rating and $4.10 target are unchanged.
This report was published on February 19, 2024.
Target price is $4.10 Current Price is $3.46 Difference: $0.64
If ARF meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 17.40 cents and EPS of 17.80 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.44.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 18.40 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.40.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASK ABACUS STORAGE KING
REITs - Overnight Price: $1.22
Moelis rates ((ASK)) as Downgrade to Hold from Buy (3) -
ABACUS STORAGE KING's December-half result met Moelis's forecasts and management reaffirmed dividend and payout-ratio guidance (a 5% yield), confirming the resilience of the storage market, says the broker.
While RevPAM posted respectable growth (albeit slower), this was overshadowed by the rolling off of hedges, dampening EPS.
The company invested $77m into acquisitions in the half and the broker observes gearing was comfortable, leaving room for $250m in develpments or acquisitions. Moelis expects the company's development pipeline should propel growth.
While the company is trading at a -19% discount to net tangible assets, the broker also observes it is under-earning given its operating cost base and management fees.
Rating downgraded to Hold from Buy. Target price is $1.34.
This report was published on February 18, 2024.
Target price is $1.34 Current Price is $1.22 Difference: $0.12
If ASK meets the Moelis target it will return approximately 10% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 6.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.33.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 6.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.33.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BLX BEACON LIGHTING GROUP LIMITED
Furniture & Renovation - Overnight Price: $2.78
Jarden rates ((BLX)) as Overweight (2) -
A continuation of momentum saw Beacon Lighting deliver a strong first half, with Jarden noting sales were up for the period despite a challenging environment. Trends are continuing into the second half to date.
As per the broker, gross margin retention above 68% remains a key uncertainty, as lower margin businesses expand, but Jarden expects the company can continue to manage mix well.
The broker expects topline growth to continue amid improving housing sentiment.
The Overweight rating is retained and the target price increases to $2.70 from $2.20.
This report was published on February 16, 2024.
Target price is $2.70 Current Price is $2.78 Difference: minus $0.08 (current price is over target).
If BLX meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 9.20 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 3.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.14.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 10.40 cents and EPS of 15.50 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.94.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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