Daily Market Reports | Mar 05 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)
ABB ACE ADH APZ AVH AX1 BSE CHC CTD CWP DYL EBO FCL HLS HSN ILU JIN KGN LIC LYC MRM MYX NAB NSR ORA ORI PPS PSI PWH PWR RED (2) RFF RIO SCG SGP STO (2) SUL TLC VEA WOW (2) WTC (2)
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $4.39
Wilsons rates ((ABB)) as Overweight (1) -
Aussie Broadband's share price rallied post-1H results as the market came to grips with a better growth trajectory, suggests Wilsons. Management also noted a strong start to the 2H, despite an 1H underlying profit miss of -32% compared to the consensus forecast.
The Overweight rating is retained and the target price increases to $5.80 from $4.20 as Wilsons allows for the Symbio acquisition and rolls forward the assumed earnings multiple to FY25.
The broker highlights pricing will rise in the 2H of FY24 and FY25 as management has re-priced both the front and back books following Special Access Undertaking (SAU) changes.
Management upgraded the FY24 earnings (EBITDA) range to $105-110m from $100-110m, while capex guidance was reduced.
This report was published on February 26, 2024.
Target price is $5.80 Current Price is $4.39 Difference: $1.41
If ABB meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.44.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 27.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.96.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $0.65
Canaccord Genuity rates ((ACE)) as Buy (1) -
Acusensus has guided to FY24 revenue of $49-51m, and EBITDA of $4-5m, both slightly ahead of Canaccord Genuity's estimates. The business is in the early stages of its global expansion, leveraging patented technology in order to capture a $1.8bn market opportunity.
While slow to be awarded, government contracts are expected to be delivered in the next six months across three markets - UK, Netherlands, US. New contracts are also expected in Australia which will aid FY25 revenues.
The broker assesses there are few ASX-listed stocks exposed to the AI evolution and this undervalues the existing opportunity and the strength of the company's position. Buy rating. Target rises to $1.30 from $1.10.
This report was published on February 27, 2024.
Target price is $1.30 Current Price is $0.65 Difference: $0.65
If ACE meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 325.00.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 325.00.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $2.31
Canaccord Genuity rates ((ADH)) as Hold (3) -
The first half result from Adairs was well received, Canaccord Genuity notes. The broker finds a couple of hurdles remain, including implementation of a new warehouse management system and reconfiguring some supply chains.
These will be near-term potential catalysts. During the half, margin execution helped offset weak top-line growth with the broker noting a "surprisingly strong print" in Mocka earnings. Hold maintained. Target rises to $2.14 from $1.40.
This report was published on February 27, 2024.
Target price is $2.14 Current Price is $2.31 Difference: minus $0.17 (current price is over target).
If ADH meets the Canaccord Genuity target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.20, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 10.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 4.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.1, implying annual growth of -13.1%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 12.1.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 14.00 cents and EPS of 24.00 cents.
At the last closing share price the estimated dividend yield is 6.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.63.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.3, implying annual growth of 22.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 9.9.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APZ ASPEN GROUP LIMITED
Real Estate - Overnight Price: $1.68
Moelis rates ((APZ)) as No Rating (-1) -
Having reported a first half operating earnings result of 6.85 cents per share, Aspen Group has lifted its full year earnings per share guidance to a range of 12.5-13.0 cents. Moelis points out this reflects between 8-13% year-on-year growth.
The residential rental business, which accounts for 27% of earnings, reported 46% earnings growth over the half, which Moelis attributes to meaningful rental growth across the portfolio, as well as contributions from newly refurbished Perth apartments.
Park asset earnings increased 16%.
The broker is on research restrictions and has provided no rating or target price.
This report was published on February 22, 2024.
Current Price is $1.68. Target price not assessed.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AVH AVITA MEDICAL INC
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $5.23
Wilsons rates ((AVH)) as Overweight (1) -
Wilsons is unconcerned by the share market's negative reaction for increased FY24 expense guidance (during the FY23 results release) given Avita Medical's own profit forecasts are still well ahead of consensus.
FY23 product revenue of US$49.8m missed the broker's forecast by -4%, but growth of 46% in FY23 was considered impressive. The 84.6% gross margin was a 130bps beat compared to Wilsons estimate.
Management provided 1Q FY24 revenue guidance of between US$14.8-15.6m, in line with the broker's forecast for US$15.1m.
The target rises to $5.42 from $5.39. Overweight.
This report was published on February 26, 2024.
Target price is $5.42 Current Price is $5.23 Difference: $0.19
If AVH meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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