Daily Market Reports | Mar 01 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
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)
A1N ANZ ASG AUB (2) BHP CDA (2) CHL CNI CRN EHL FCL ILU INA (3) IPH JDO KMD MAH MND MP1 NHC NSR NWL PFP PRN PWR RED SGM SHL SHM SIQ SLR (2)
A1N ARN MEDIA LIMITED
Print, Radio & TV - Overnight Price: $0.85
Wilsons rates ((A1N)) as Downgrade to Market Weight from Overweight (3) -
The 2023 results from ARN Media continue to highlight a tough advertising market, Wilsons asserts, with the attempted takeover of Southern Cross Media ((SXL)) remaining the focus over the next few months.
Audio revenue was in line with the broker's estimates and group EBIT slightly weaker. Estimates for 2024 are downgraded slightly because of revenue timing while small upgrades are made to FY25-26 forecasts.
Wilsons downgrades to Market Weight from Overweight and lowers the target to $0.92 from $1.24.
This report was published on February 23, 2024.
Target price is $0.92 Current Price is $0.85 Difference: $0.07
If A1N meets the Wilsons target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $0.90, suggesting upside of 6.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 7.10 cents and EPS of 8.90 cents.
At the last closing share price the estimated dividend yield is 8.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.55.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.7, implying annual growth of N/A.
Current consensus DPS estimate is 7.7, implying a prospective dividend yield of 9.1%.
Current consensus EPS estimate suggests the PER is 8.8.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 10.20 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 12.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.2, implying annual growth of 5.2%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 10.4%.
Current consensus EPS estimate suggests the PER is 8.3.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $28.45
Jarden rates ((ANZ)) as Neutral (3) -
ANZ Bank has recieved unconditional approval from the Australian Competition Tribunal for its proposed acquisition of Suncorp Group's ((SUN)) banking operations, overturning an initial rejection from the ACCC in August.
The Tribunal determined that the acquisition is not likely to substantially lessen competition in the supply of home loans on a national level.
Jarden points out this is just one of three approvals required for completion of the acquisition, with approval from the state government and Federal Treasurer still required, although the broker expects approval from the Queensland government is likely.
The broker anticipates upgrades to earnings per share across the market, with the acquisition looking likely to complete by the end of FY24.
The Neutral rating and target price of $26.70 are retained.
This report was published on February 20, 2024.
Target price is $26.70 Current Price is $28.45 Difference: minus $1.75 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.50, suggesting downside of -6.9%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 162.00 cents and EPS of 221.00 cents.
At the last closing share price the estimated dividend yield is 5.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.87.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 218.0, implying annual growth of -7.9%.
Current consensus DPS estimate is 159.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.1.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 163.00 cents and EPS of 222.00 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.82.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 222.8, implying annual growth of 2.2%.
Current consensus DPS estimate is 161.4, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.8.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASG AUTOSPORTS GROUP LIMITED
Automobiles & Components - Overnight Price: $2.33
Wilsons rates ((ASG)) as Overweight (1) -
Autosports Group posted a "strong" first half result with pre-tax profit in line with Wilsons. Further acquisition activity is expected to sustain the top line, although interest expense increases will hamper earnings growth, suggests the broker.
The broker is encouraged by the company's confirmation of growth in the order book. Revenue growth in service and parts continues above trend amid improved vehicle deliveries.
Wilsons retains an Overweight rating, raising the target to $3.85 from $3.78.
This report was published on February 23, 2024.
Target price is $3.85 Current Price is $2.33 Difference: $1.52
If ASG meets the Wilsons target it will return approximately 65% (excluding dividends, fees and charges).
Current consensus price target is $3.10, suggesting upside of 33.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 20.50 cents and EPS of 37.10 cents.
At the last closing share price the estimated dividend yield is 8.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 35.0, implying annual growth of 7.5%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 8.2%.
Current consensus EPS estimate suggests the PER is 6.7.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 21.00 cents and EPS of 37.10 cents.
At the last closing share price the estimated dividend yield is 9.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.0, implying annual growth of -14.3%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 7.8.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AUB AUB GROUP LIMITED
Insurance - Overnight Price: $30.22
Goldman Sachs rates ((AUB)) as Buy (1) -
AUB Group reported in line results according to Goldman Sachs, with an improvement in EBIT margins, although the declared dividend of 20cps was lower than the broker's estimated 25.5cps.
Management upgraded FY24 NPAT guidance to $171m from $161m , a 4% increase on previous guidance, notes the analyst.
Goldman Sachs continues to like the company due to robust tailwinds from a strong premium growth backdrop which benefits revenue, as well as little underwriting risks and a balance sheet able to support acquisitions.
A Buy rating is retained and the target price is raised to $32.50 from $32.00.
This report was published on February 21, 2024.
Target price is $32.50 Current Price is $30.22 Difference: $2.28
If AUB meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $34.82, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 79.00 cents and EPS of 155.00 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 154.5, implying annual growth of 136.4%.
Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 19.6.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 89.00 cents and EPS of 171.00 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 17.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 169.5, implying annual growth of 9.7%.
Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.8.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((AUB)) as Overweight (2) -
AUB Group's first half results came in slightly ahead of Jarden's expectations, and with full year underlying net profit guidance upgraded 4% the broker remains contructive on the company.
The Tyser brand did report a softer half, raising some concerns, but AUB Group finds the business performing in line with its plan and pointed to material seasonality skews. It anticipates revenue upside moving into FY25.
The Overweight rating is retained and the target price increases to $32.95 from $32.60.
This report was published on February 20, 2024.
Target price is $32.95 Current Price is $30.22 Difference: $2.73
If AUB meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.82, suggesting upside of 15.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 80.00 cents and EPS of 153.70 cents.
At the last closing share price the estimated dividend yield is 2.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.66.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 154.5, implying annual growth of 136.4%.
Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 19.6.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 99.00 cents and EPS of 179.30 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 169.5, implying annual growth of 9.7%.
Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 17.8.
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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