Daily Market Reports | Mar 18 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
29M ADA ASB CVW DDR FCL GNG MAQ NCK OBM PNR QIP RDY SFR SMP SPZ THL TLX
29M 29METALS LIMITED
Copper - Overnight Price: $0.49
Jarden rates ((29M)) as Downgrade to Neutral from Overweight (3) -
As per Jarden, persistent liquidity concerns have seen the broker downgrade its rating on 29Metals. While the stock has rallied more than 50% since reporting on its full year in late February, the broker expects this will provide shareholders little consolation.
The company has announced a new CEO, to commence from the start of May, and while the new hire seems a good fit, with more than 25 years of experience in the Australian mining industry, Jarden warns it could signal a 'clearing of the decks'.
The broker expects restitution of an appropriate capital structure and lower operating costs will be a priority.
The rating is downgraded to Neutral from Overweight and the target price of 38 cents is retained.
This report was published on March 7, 2024.
Target price is $0.38 Current Price is $0.49 Difference: minus $0.115 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.41, suggesting downside of -16.5%(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 10.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -12.6, 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 dividend of 0.00 cents and EPS of 14.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.34.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.1, 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 23.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADA ADACEL TECHNOLOGIES LIMITED
Software & Services - Overnight Price: $0.69
Taylor Collison rates ((ADA)) as Outperform (2) -
While 1H results for Adacel Technologies (on February 19) were below expectations, Taylor Collison suggests the subsequent share price fall presents an opportunity for investors.
The broker points out strategic contract wins announced by the company will be cash generative and enable dividends to recommence in FY25. It's noted management recently signed multiple five-year contracts, with high-quality government or quasi-government entities.
The analyst points out any further contract wins will scale on a largely fixed cost base, with pre-tax profit effectively an after-tax number due to $60m worth of available tax losses.
No interim dividend was declared due to the cash requirements of delivering on contract wins, explains Outperform-rated Taylor Collison. No target price is provided.
This report was published on March 8, 2024.
Current Price is $0.69. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.17.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 5.20 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 7.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.27.
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
ASB AUSTAL LIMITED
Commercial Services & Supplies - Overnight Price: $2.14
Petra Capital rates ((ASB)) as Buy (1) -
Austal has confirmed its intention to increase capacity and operating efficiencies at its Alabama shipyard, following recent strong growth in the company's order book.
As per Petra Capital, the order book increase is allowing the company to shift focus from contract tendering and to delivering contracts at its target earnings margin of 8-10%.
The company has outlined capital expenditure needs as an operational challenge to be resolved, and Petra Capital notes US capital expenditure could total -$100-300m.
The Buy rating and target price of $3.08 are retained.
This report was published on March 7, 2024.
Target price is $3.08 Current Price is $2.14 Difference: $0.94
If ASB meets the Petra Capital target it will return approximately 44% (excluding dividends, fees and charges).
Current consensus price target is $2.68, suggesting upside of 25.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 7.00 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 3.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 4.7, implying annual growth of N/A.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 45.5.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 7.50 cents and EPS of 11.10 cents.
At the last closing share price the estimated dividend yield is 3.50%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.3, implying annual growth of 161.7%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 17.4.
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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