Daily Market Reports | Mar 04 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)
A1M APE BRI EQT GOZ HUB LRK MND SGM SLC TLX UNI WSP
EQT EQT HOLDINGS LIMITED
Diversified Financials - Overnight Price: $29.48
Wilsons rates ((EQT)) as Overweight (1) -
While EQT Holdings reported year-on-year net profit growth of 24.9% in the first half, and revenue growth of 37.3%, Wilsons points out meaningful earnings margin expansion in the period was prevented by increased operating expenditure, underpinned by higher employee costs.
The company has provided no quantitative guidance for the full year, but expects revenue and funds under management to grow ahead of net profit momentum.
The Overweight rating is retained and the target price decreases to $31.50 from $32.70.
This report was published on February 23, 2024.
Target price is $31.50 Current Price is $29.48 Difference: $2.02
If EQT meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 107.50 cents and EPS of 147.20 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.03.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 136.50 cents and EPS of 182.00 cents.
At the last closing share price the estimated dividend yield is 4.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.20.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
GOZ GROWTHPOINT PROPERTIES AUSTRALIA
Infra & Property Developers - Overnight Price: $2.25
Moelis rates ((GOZ)) as Buy (1) -
Growthpoint Properties Australia posted first half free funds from operations of 12.1c per security, ahead of expectations. FY24 guidance was reiterated.
Moelis believes the WALE (weighted average lease expiry) of 6.2 years for office and 4.9 years for industrial should be key for investors, because these underpin the quality and stability of the income profile, 94% leased to government, listed or large companies.
This enables the business to service a relatively higher debt load over the short term. The broker expects the company will be a net seller of assets as liquidity and real estate markets improve throughout 2024 and this should mean gearing declines. Buy rating and $3.43 target maintained.
This report was published on February 22, 2024.
Target price is $3.43 Current Price is $2.25 Difference: $1.18
If GOZ meets the Moelis target it will return approximately 52% (excluding dividends, fees and charges).
Current consensus price target is $2.97, suggesting upside of 31.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 19.30 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 8.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.1, implying annual growth of N/A.
Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 8.6%.
Current consensus EPS estimate suggests the PER is 10.7.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 19.90 cents and EPS of 23.20 cents.
At the last closing share price the estimated dividend yield is 8.84%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.70.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.1, implying annual growth of N/A.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 8.3%.
Current consensus EPS estimate suggests the PER is 10.7.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
HUB HUB24 LIMITED
Wealth Management & Investments - Overnight Price: $39.38
Jarden rates ((HUB)) as Neutral (3) -
Despite Hub24's platform division continuing to perform well through the second half, Jarden points out bottom line benefits were constrained by strategic technology investments, higher depreciation and amortisation, and a higher effective tax rate.
The broker has made adjustments to its earnings per share forecasts for FY24 and FY25, anticipating stategic investment costs will be recurring and that platform revenue margins may show greater compression from the second half.
The Neutral rating is retained and the target price increases to $38.50 from $37.10.
This report was published on February 21, 2024.
Target price is $38.50 Current Price is $39.38 Difference: minus $0.88 (current price is over target).
If HUB meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $40.54, suggesting upside of 2.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 41.00 cents and EPS of 81.30 cents.
At the last closing share price the estimated dividend yield is 1.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 83.7, implying annual growth of 75.5%.
Current consensus DPS estimate is 39.7, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 47.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 52.80 cents and EPS of 105.60 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 108.4, implying annual growth of 29.5%.
Current consensus DPS estimate is 53.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 36.3.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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