Daily Market Reports | Feb 29 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)
CAR CTD DHG HMC IRE KMD MGH PRN REA RTR RWC SEK SGF SVR
CAR CAR GROUP LIMITED
Automobiles & Components - Overnight Price: $36.02
Goldman Sachs rates ((CAR)) as Upgrade to Buy from Neutral (1) -
After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.
The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.
CAR Group grew market share in the 1H and the analysts are increasingly confident in earnings momentum both domestically and globally.
Goldmans rating is upgraded to Buy from Neutral and the target increased by 19% to $39.40.
This report was published on February 20, 2024.
Target price is $39.40 Current Price is $36.02 Difference: $3.38
If CAR meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.02, suggesting downside of -5.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 73.00 cents and EPS of 91.00 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.58.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 83.4, implying annual growth of -54.0%.
Current consensus DPS estimate is 67.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 43.2.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 82.00 cents and EPS of 102.00 cents.
At the last closing share price the estimated dividend yield is 2.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.31.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 96.3, implying annual growth of 15.5%.
Current consensus DPS estimate is 78.1, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 37.4.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CTD CORPORATE TRAVEL MANAGEMENT LIMITED
Travel, Leisure & Tourism - Overnight Price: $15.84
Wilsons rates ((CTD)) as Downgrade to Market Weight from Overweight (3) -
Corporate Travel Management's H1 performance missed Wilsons' forecasts by a mile, or two, with the UK Bridging Contract but one reason why.
Conditions overall seem to have improved in H2, but management still revised FY24 guidance downwards, by a few miles.
The company also disclosed more details about its 5-year plan, which the broker welcomes. The objective is to double EBITDA between FY24 to FY29.
Wilsons believes the heavy disappointment this season now means time is needed to rebuild investors' confidence. The broker downgrades its rating to Market Weight from Overweight, also inspired by the share price, and reduces its price target to $15.25 (was $21.31).
This report was published on February 22, 2024.
Target price is $15.25 Current Price is $15.84 Difference: minus $0.59 (current price is over target).
If CTD meets the Wilsons target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $18.92, suggesting upside of 19.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 39.40 cents and EPS of 88.00 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 85.9, implying annual growth of 61.9%.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 18.4.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 46.80 cents and EPS of 99.90 cents.
At the last closing share price the estimated dividend yield is 2.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 103.8, implying annual growth of 20.8%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 15.3.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DHG DOMAIN HOLDINGS AUSTRALIA LIMITED
Real Estate - Overnight Price: $3.31
Goldman Sachs rates ((DHG)) as Neutral (3) -
After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.
The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.
The analysts prefer Buy-rated REA Group over Domain Holdings Australia (Neutral, target $3.60), despite Domain's significant valuation discount by comparison to REA Group.
The broker holds longer-term market share concerns for Domain despite a strong near-term growth trajectory.
This report was published on February 20, 2024.
Target price is $3.60 Current Price is $3.31 Difference: $0.29
If DHG meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.39, suggesting upside of 2.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 4.00 cents and EPS of 7.00 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.1, implying annual growth of 95.7%.
Current consensus DPS estimate is 5.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 40.9.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 6.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.4, implying annual growth of 16.0%.
Current consensus DPS estimate is 6.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 35.2.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
HMC HMC CAPITAL LIMITED
Wealth Management & Investments - Overnight Price: $6.94
Jarden rates ((HMC)) as Neutral (3) -
Following HMC Capital's 1H results, Jarden updates its FY24-26 EPS forecasts by -12.8%, -6.8% and 3.6%, respectively, and the target rises to $7.00 from $6.35 with the help of a valuation roll-forward.
The broker admires the "impressive platform" HMC Capital is building in attractive asset classes, which should drive material growth for both earnings and assets under management (AUM).
The analysts' Neutral rating is kept as underlying earnings momentum does not yet match either the growth narrative or the current share price.
This report was published on February 21, 2024.
Target price is $7.00 Current Price is $6.94 Difference: $0.06
If HMC meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $6.92, suggesting downside of -0.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 11.80 cents and EPS of 20.40 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.9, implying annual growth of 48.4%.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 24.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 11.80 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.4, implying annual growth of 5.2%.
Current consensus DPS estimate is 12.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.8.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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