Daily Market Reports | Mar 12 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)
360 ALC ATG CAA CAJ (3) CMM CTM CUV CVN DGL DSE DSK DUG EOS EVO FFM FLT (2) GDG (2) GEM GNC GNX HVN (2) IPD (2) IR1 JLG KAR (2) KED KYP LBL LNW M7T MAQ (2) MDR (2) MEI (2) MOZ MXI NEU (2) NXD NXS NXT ORI PPG PPM (2) PPT PTM (2) QOR RED RHC (2) S32 SDR SHV SPK SPR SXL TRJ VGL WGX (2) XRO (2)
360 LIFE360 INC
Software & Services - Overnight Price: $12.20
Goldman Sachs rates ((360)) as Buy (1) -
Goldman Sachs raises its target for Life360 by 35% to $14.20 after FY23 results demonstrated significant earnings growth and management announced plans to introduce advertising for its free user base. The Buy rating is maintained.
Management's FY24 core revenue guidance seems achievable to the broker, with growth underpinned by monthly active users, International, and the ongoing blended average revenue per paying circle (ARPPC) expansion.
Successful execution on the advertising initiative could represent an inflection point in Life360’s earnings profile, in Goldman's view.
This report was published on March 4, 2024.
Target price is $14.20 Current Price is $12.20 Difference: $2
If 360 meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $13.63, suggesting upside of 11.7%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 14.28 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 85.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.7, 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 717.6.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 31.14 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.4, implying annual growth of 1394.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 48.0.
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
ALC ALCIDION GROUP LIMITED
Healthcare services - Overnight Price: $0.05
Canaccord Genuity rates ((ALC)) as Buy (1) -
An in line first half result from Alcidion Group, according to Canaccord Genuity. The company reported revenues of $19.1m for the half, and $35.5m in contracted revenue for FY24.
The first half result does provide Canaccord Genuity with some confidence in Alcidion Group reaching its full year target, despite NHS procurement delays which have consistently put pressure on new business growth.
The broker does believe the announcement of several large NHS contracts could prove an inflection point for the stock, restoring investor confidence in the sustainability of growth prospects.
The Buy rating and target price of 10 cents are retained.
This report was published on February 28, 2024.
Target price is $0.10 Current Price is $0.05 Difference: $0.05
If ALC meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 12.50.
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 25.00.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ATG ARTICORE GROUP LIMITED
Overnight Price: $0.53
Canaccord Genuity rates ((ATG)) as Buy (1) -
Articore Group's first half result has revealed a -10% year-on-year marketplace revenue decline to $260m, while gross profit lifted 7% to $108m. Canaccord Genuity points out the first half result is an upgrade to consensus forecasts, exceeding full year earning estimates.
Canaccord Genuity considers 2023 a period of transition for the company, as it aimed to maximise profitabilty, improve unit economics, and materially reduce its operating expenditure base.
Looking ahead, the outlook from the company was weaker than expected, with Articore Group warning trading conditions look to remain soft in the near-term.
The Buy rating is retained and the target price decreases to $1.00 from $1.20.
This report was published on February 27, 2024.
Target price is $1.00 Current Price is $0.53 Difference: $0.47
If ATG meets the Canaccord Genuity target it will return approximately 89% (excluding dividends, fees and charges).
Current consensus price target is $0.63, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 132.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -1.8, 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 N/A.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.50 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -0.3, 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.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAA CAPRAL LIMITED
Aluminium, Bauxite & Alumina - Overnight Price: $9.38
Taylor Collison rates ((CAA)) as Outperform (2) -
While Capral's anticipated slowdown has commenced, comments Taylor Collison, the company has still delivered $3.0m in earnings growth over 2023 despite declining revenue, in a testament to the company's more agile operations.
The company has managed to report minimal volume reversal, down just -1% on the previous year, despite a flailing residential housing sector. Taylor Collison notes 2024 will be a first indication of Capral's ability to maintain consistent profitability following its restructuring.
The Outperform rating is retained with no target price provided.
This report was published on February 27, 2024.
Current Price is $9.38. Target price not assessed.
The company's fiscal year ends in December.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of 146.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.41.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 141.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.65.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAJ CAPITOL HEALTH LIMITED
Healthcare services - Overnight Price: $0.26
Canaccord Genuity rates ((CAJ)) as Buy (1) -
Capitol Health reported a positive first half result, Canaccord Genuity suggests. Organic revenue growth of 10.2% was in line, with margin improvement ahead of expectations. The company is working well to control costs in an inflationary environment, the broker notes.
The company's strategic plan is progressing well, in Canaccord's view, with a standard operating model across all practices, and now unified clinical software across the board aimed to restore margin.
Management is also closing down unprofitable sites, aligning labor with demand, and has taken an external review to identify further cost savings in its procurement processes.
Given the health of the balance sheet and Canaccord's view of the pathway for growth with brownfield expansion and M&A, the broker does not believe a discount to valuation is warranted. Buy and 27c target retained.
This report was published on March 8, 2024.
Target price is $0.27 Current Price is $0.26 Difference: $0.015
If CAJ meets the Canaccord Genuity target it will return approximately 6% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((CAJ)) as Neutral (3) -
Capitol Health delivered a solid first half operating result, Jarden suggests, with underlying earnings ahead of estimates. Encouragingly, and contrary to FY23 updates, margins were a positive surprise, with the company demonstrating better cost control.
Capitol Health is doing well in a tough environment, the broker notes, outperforming Medicare growth rates and improving the earnings margin by some 200bps. Positively, top-line momentum has continued into the second half despite persistent challenges in the GP referral market.
With these headwinds still looming and a PE now above historical trends, Jarden views the stock as trading at fair value and retains a Neutral rating. Target rises to 27c from 26c.
This report was published on March 8, 2024.
Target price is $0.27 Current Price is $0.26 Difference: $0.015
If CAJ meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.50.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.62.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((CAJ)) as Market Weight (3) -
The first half results from Capitol Health were ahead of Wilsons and described as "excellent".
The beat stemmed from market share and a notable change in billing mix. The broker believes the business is delivering solid results from a "workmanlike set of otherwise unspectacular radiology assets".
Wilsons also notes margin improvement has been flagged and upgrades estimates by mid single-digit percentages. Market Weight retained. Target is raised to $0.27 from $0.25.
This report was published on February 29, 2024.
Target price is $0.27 Current Price is $0.26 Difference: $0.015
If CAJ meets the Wilsons target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 1.00 cents and EPS of 1.00 cents.
At the last closing share price the estimated dividend yield is 3.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.50.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 1.10 cents and EPS of 1.30 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.62.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CMM CAPRICORN METALS LIMITED
Gold & Silver - Overnight Price: $5.00
Jarden rates ((CMM)) as Overweight (2) -
As per Jarden, Capricorn Metals has, relative to peers, enjoyed stable share price performance over the past two years.
The broker expects a track record in delivering new mining operations and a material production growth outlook should benefit the company as it heads into 2024 with an increased focus on delivery of its Mt Gibson gold project.
The broker feels Capricorn Metals is heading into the new calendar year in a strong position. The Overweight rating is retained and the target price decreases to $4.77 from $4.78.
This report was published on March 5, 2024.
Target price is $4.77 Current Price is $5.00 Difference: minus $0.23 (current price is over target).
If CMM meets the Jarden target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 26.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.16.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 20.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.63.
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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