Daily Market Reports | Mar 07 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)
29M ABB ACE ADH (2) ASB ASG AVA AX1 (2) BXB (2) CCR CMM CSR CYG EDV ESK FMG GMG GNX GOR GTN IGO IPH JIN LAU LFG LOV MHJ MYX NAN NHF NXD OCL PBH PLS PNV PPE (2) PPS PSQ PXA (2) QAN RDY REG SFR (2) SMR STX SUN TAH TLX TPG TYR UNI VIT WDS WPR
29M 29METALS LIMITED
Copper - Overnight Price: $0.36
Jarden rates ((29M)) as Overweight (2) -
29Metals 2023 results are described by Jarden as "confronting". The underlying EBITDA loss of -$21m was slightly ahead of forecasts. No changes have been made to recent guidance. The broker reduces forecast for 2024 EBITDA by -15%, given an expected slower recovery at Capricorn Copper.
The company needs to secure approval to deposit the tailings in the E-pit by April or the asset will move into care & maintenance. Jarden pushes out the recovery to full production to late 2024 and is confident that the operating profile will be uninterrupted.
The broker points out the longer that copper and zinc prices are at current levels the more likely additional funding will be required for the company to remain solvent. Overweight. Target edges down to $0.38 from $0.39.
This report was published on February 23, 2024.
Target price is $0.38 Current Price is $0.36 Difference: $0.015
If 29M meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $0.43, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.93.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -13.7, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 14.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 2.47.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 45.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $4.41
Wilsons rates ((ABB)) as Overweight (1) -
Aussie Broadband has submitted a non-binding indicative proposal to acquire Superloop ((SLC)) by way of a scheme of arrangement. Wilsons notes, if successful, the acquisition would result in the combined business having a market share of 11.8% of the NBN and be the fourth biggest wholesale provider.
The broker considers the price, SLC shareholders will receive 0.21 ABB shares for each share which, based on the last ABB closing price implies a total value to Superloop shareholders of $0.95.
Wilsons considers the proposal somewhat opportunistic and there are few players that could probably compete with the offer. No ACCC issues are envisaged. Overweight. Target is $5.80.
This report was published on February 27, 2024.
Target price is $5.80 Current Price is $4.41 Difference: $1.39
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 27.56.
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 16.04.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $0.68
Wilsons rates ((ACE)) as No Rating (-1) -
Acusensus posted a strong first half due to its success domestically, Wilsons observes. With FY24 being a year of investment, the broker assesses FY25 should be when some of the returns are realised.
Revenue grew 25% and gross profit 32%. Key wins include a new 5-year-plus contract with South Australia for multiple fixed mobile phone detection installations and expansion of the number of trailers for mobile phone and seatbelt enforcement in Queensland.
In international business the company has moved from one-off pilots to medium-term engagements in the UK and opened up the market in the US.
There is no rating on the stock.
This report was published on February 27, 2024.
Current Price is $0.68. Target price not assessed.
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
Jarden rates ((ADH)) as Neutral (3) -
First half results from Adairs beat estimates although Jarden observes it was a lower quality result, driven by depreciation and amortisation.
The broker acknowledges management's "good job" navigating a tough cost and sales environment but retains a Neutral rating as the stock is trading at a FY24 PE of around 11x and forecasts reflect significant execution risk.
The broker envisages better relative value elsewhere, although would reconsider its view if there was sustainable improvement in comparables. Target is raised to $ 2.09 from $1.45.
This report was published on February 27, 2024.
Target price is $2.09 Current Price is $2.31 Difference: minus $0.22 (current price is over target).
If ADH meets the Jarden target it will return approximately minus 10% (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:
Jarden forecasts a full year FY24 EPS of 19.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.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:
Jarden forecasts a full year FY25 EPS of 24.00 cents.
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
Wilsons rates ((ADH)) as Upgrade to Market Weight from Underweight (3) -
First half results from Adairs were mixed with sales in line and net profit ahead amid a strong rebound in gross margins and cost control. Wilsons notes gross margins recovered despite value-seeking consumers, while the top line was held back by limited stock.
The issues with the margin for Mocka appear resolved although the broker notes the core customer remains value-oriented and volatile.
Execution on costs and the ability to show pricing power results in Wilsons upgrading to Market Weight from Underweight. Target is raised to $2.00 from $1.10.
This report was published on February 27, 2024.
Target price is $2.00 Current Price is $2.31 Difference: minus $0.31 (current price is over target).
If ADH meets the Wilsons target it will return approximately minus 13% (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:
Wilsons forecasts a full year FY24 dividend of 7.50 cents and EPS of 19.10 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.09.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:
Wilsons forecasts a full year FY25 dividend of 5.00 cents and EPS of 19.20 cents.
At the last closing share price the estimated dividend yield is 2.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.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
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