Daily Market Reports | Mar 14 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)
AGY ASX AZJ AZS BPT CU6 CXO CY5 DLI ELD EOS FBU GL1 GLN GT1 IGO IMM INR LLL LRS LTR NDO PLL PLS PSC PYC SPZ SYA TLX VUL WC8 WR1
AGY ARGOSY MINERALS LIMITED
New Battery Elements - Overnight Price: $0.17
Canaccord Genuity rates ((AGY)) as Speculative Buy (1) -
Canaccord Genuity sees opportunities for investors with some currently attractive valuations for lithium companies under research coverage. Incumbent producers and low-capex, near-term-development plays are preferred.
The broker now expects minor surpluses for lithium markets over 2024-25 and sees potential for surpluses to swing to deficits, providing pricing upside risk.
While Canaccord's long-term price forecasts remain at US$22,500/t for chemicals and US$1,500/t for concentrate, prices should rally in the 1H of 2024 to around US$16,000/t and US$1,200/t, respectively.
As these 1H price forecasts are lower than the broker's original forecasts, price targets for developers/explorers and producers under research coverage fall on average by -16% and -11%, respectively.
The target for Argosy Minerals falls to 27c from 35c and the Speculative Buy rating is unchanged.
This report was published on March 8, 2024.
Target price is $0.27 Current Price is $0.17 Difference: $0.1
If AGY meets the Canaccord Genuity target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASX ASX LIMITED
Wealth Management & Investments - Overnight Price: $67.04
Jarden rates ((ASX)) as Neutral (3) -
Year-on-year daily futures volume growth on the ASX slowed to 5% from late February, following four consecutive months of more than 20% futures growth, while daily equity market turnover rose a modest 2% year-on-year.
Positives for Jarden included the lifting of capital raising activity from cyclical lows, up 58% year-on-year, but with this remaining well below through the cycle averages the broker sees limited value appeal in the stock.
The Neutral rating is retained and the target price increases to $62.10 from $62.00.
This report was published on March 6, 2024.
Target price is $62.10 Current Price is $67.04 Difference: minus $4.94 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $62.68, suggesting downside of -6.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 210.70 cents and EPS of 247.90 cents.
At the last closing share price the estimated dividend yield is 3.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 245.8, implying annual growth of 50.0%.
Current consensus DPS estimate is 209.0, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 27.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 229.50 cents and EPS of 269.90 cents.
At the last closing share price the estimated dividend yield is 3.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.84.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 254.7, implying annual growth of 3.6%.
Current consensus DPS estimate is 216.1, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.3.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZJ AURIZON HOLDINGS LIMITED
Transportation & Logistics - Overnight Price: $3.92
Jarden rates ((AZJ)) as Neutral (3) -
While Aurizon Holdings is guiding to decline in coal yields over the second half, Jarden points out this doesn't have to mean a decline in earnings, which the market seems to have assumed will be a result of lower yields.
It is the broker's opinion that the market may be missing signs that suggest earnings could be stronger near-term. Second half market haulage estimates for half-on-half growth of 7% remain, and could underpin surprise upside to segment forecasts.
The Neutral rating and target price of $3.95 are retained.
This report was published on March 6, 2024.
Target price is $3.95 Current Price is $3.92 Difference: $0.03
If AZJ meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.93, suggesting upside of 0.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 19.50 cents and EPS of 25.90 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.9, implying annual growth of 66.1%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 15.7.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 28.60 cents and EPS of 28.60 cents.
At the last closing share price the estimated dividend yield is 7.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.71.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.2, implying annual growth of 13.3%.
Current consensus DPS estimate is 22.8, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 13.9.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZS AZURE MINERALS LIMITED
Mining - Overnight Price: $3.64
Canaccord Genuity rates ((AZS)) as Speculative Buy (1) -
Canaccord Genuity sees opportunities for investors with some currently attractive valuations for lithium companies under research coverage. Incumbent producers and low-capex, near-term-development plays are preferred.
The broker now expects minor surpluses for lithium markets over 2024-25 and sees potential for surpluses to swing to deficits, providing pricing upside risk.
While Canaccord's long-term price forecasts remain at US$22,500/t for chemicals and US$1,500/t for concentrate, prices should rally in the 1H of 2024 to around US$16,000/t and US$1,200/t, respectively.
As these 1H price forecasts are lower than the broker's original forecasts, price targets for developers/explorers and producers under research coverage fall on average by -16% and -11%, respectively.
The target for Azure Minerals falls to $3.70 from $3.95 and the Speculative Buy rating is unchanged.
This report was published on March 8, 2024.
Target price is $3.70 Current Price is $3.64 Difference: $0.06
If AZS meets the Canaccord Genuity target it will return approximately 2% (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.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BPT BEACH ENERGY LIMITED
Crude Oil - Overnight Price: $1.68
Wilsons rates ((BPT)) as Overweight (1) -
Wilsons believes a successful drilling program could increase Beach Energy's existing Otway resources by circa 40% and provide meaningful backfill volumes to the Otway gas plant, unlocking up to 41cps of value.
The analysts suggest the market is not factoring in an increased work program for Beach Energy which includes four wells and capex of around -$200m.
Overweight rating. The target rises to $1.96 from $1.84.
This report was published on March 7, 2024.
Target price is $1.96 Current Price is $1.68 Difference: $0.28
If BPT meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $1.93, suggesting upside of 15.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 5.00 cents and EPS of 15.00 cents.
At the last closing share price the estimated dividend yield is 2.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.20.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.9, implying annual growth of -15.2%.
Current consensus DPS estimate is 3.6, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 11.3.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 8.00 cents and EPS of 27.20 cents.
At the last closing share price the estimated dividend yield is 4.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.9, implying annual growth of 67.1%.
Current consensus DPS estimate is 7.1, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 6.7.
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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