Daily Market Reports | Mar 06 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)
AIA AIZ AOF APE AVG CRD CUV DMP (2) DUR ECF ENN GNE GNP GOR HLO IFL IGO IPH LIC (2) MIN (2) MPL (2) MVF NEC NST ORI PLS QAN QUB RFF RRL SFR SHA SKC SUL (2) TRS
AVG AUSTRALIAN VINTAGE LIMITED
Food, Beverages & Tobacco - Overnight Price: $0.38
Moelis rates ((AVG)) as Buy (1) -
Moelis sees the cost out benefits emerging in Australian Vintage's first half results. The company reported revenue of $136m and underlying earnings of $16.5m, the latter a miss to the broker's forecast on higher than anticipated operating costs.
Australian Vintage did achieve -$7.8m in cost out benefits in the period, driven by a reduced headcount, greater procurement terms and shipping efficiency gains.
The Buy rating is retained and the target price decreases to 45 cents from 60 cents.
This report was published on March 25, 2024.
Target price is $0.45 Current Price is $0.38 Difference: $0.07
If AVG meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.18.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CRD CONRAD ASIA ENERGY LIMITED
Business & Consumer Credit - Overnight Price: $1.17
Wilsons rates ((CRD)) as Overweight (1) -
Conrad Asia Energy has announced approval from the Indonesian government for the gas price and volume allocation from Mako in relation to exporting to Singapore.
Wilsons believes this is an important milestone in pipeline agreements as it forms the basis for reserving pipeline capacity for the evacuation of Mako gas by the West Natuna Transport System to Singapore.
Overweight rating and $ 2.41 target. Now that pricing and volume allocations are approved, the broker believes farm-in partners have a better line of sight on the commercial aspects, and could farm-in before the finalisation of the gas sales agreement.
This report was published on February 23, 2024.
Target price is $2.41 Current Price is $1.17 Difference: $1.245
If CRD meets the Wilsons target it will return approximately 107% (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 and EPS of minus 5.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 23.24.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 9.87 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.80.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CUV CLINUVEL PHARMACEUTICALS LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $13.97
Wilsons rates ((CUV)) as Overweight (1) -
Clinuvel Pharmaceuticals delivered a soft first half result, Wilsons asserts, missing expectations. The broker notes good progress in expanding new US prescribing centres.
Yet the investment phase for the company can be tricky to navigate, given existing revenue is not growing at a rate to support the lift in expenses.
The broker knows investment now will bear fruit in 12-18 months time but understands it is hard for short-term investors to see through the margin decline.
This drives an Overweight rating. Target is reduced to $25.46 from $28.13.
This report was published on February 23, 2024.
Target price is $25.46 Current Price is $13.97 Difference: $11.49
If CUV meets the Wilsons target it will return approximately 82% (excluding dividends, fees and charges).
Current consensus price target is $18.75, suggesting upside of 34.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 7.70 cents and EPS of 64.40 cents.
At the last closing share price the estimated dividend yield is 0.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 69.5, implying annual growth of 12.2%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 20.1.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 10.40 cents and EPS of 69.10 cents.
At the last closing share price the estimated dividend yield is 0.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 75.6, implying annual growth of 8.8%.
Current consensus DPS estimate is 6.7, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 18.5.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DMP DOMINO'S PIZZA ENTERPRISES LIMITED
Food, Beverages & Tobacco - Overnight Price: $45.35
Goldman Sachs rates ((DMP)) as Neutral (3) -
Following the release of first half results from Domino's Pizza Enterprises, Goldman Sachs has revised its group sales forecasts by -1-2% and earnings by 0-3% between FY24-26.
The company reported first half group sales of $1.3bn, reflecting 10% growth year-on-year, and earnings of $108m, down -5% year-on-year. Comps suggest the company's Japanese operations continued to lose market share, and the broker remains wary of margin risk.
The Neutral rating is retained and the target price increases to $39.70 from $38.30.
This report was published on February 22, 2024.
Target price is $39.70 Current Price is $45.35 Difference: minus $5.65 (current price is over target).
If DMP meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $50.42, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 113.00 cents and EPS of 142.00 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 31.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 139.8, implying annual growth of 203.3%.
Current consensus DPS estimate is 108.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 32.4.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 138.00 cents and EPS of 175.00 cents.
At the last closing share price the estimated dividend yield is 3.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.91.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 185.9, implying annual growth of 33.0%.
Current consensus DPS estimate is 139.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.4.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((DMP)) as Upgrade to Overweight from Neutral (2) -
As Domino's Pizza Enterprises downgraded guidance in January, the first half report held few surprises for Jarden. The broker was seeking signs of improved same-store sales growth in Japan and the EU, and this was delivered.
Japan accelerated to 6.7% in the first seven weeks of the second half and Europe, while edging down -0.6%, revealed Germany was up 6.1%, the key growth market.
Risks remain yet the broker envisages the weight is to the upside and takes comfort in the momentum that has continued in Australasia. Rating is upgraded to Overweight from Neutral. Target edges down to $49 from $50.
This report was published on February 22, 2024.
Target price is $49.00 Current Price is $45.35 Difference: $3.65
If DMP meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $50.42, suggesting upside of 11.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 137.00 cents and EPS of 137.50 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 139.8, implying annual growth of 203.3%.
Current consensus DPS estimate is 108.7, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 32.4.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 192.00 cents and EPS of 191.40 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 185.9, implying annual growth of 33.0%.
Current consensus DPS estimate is 139.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.4.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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