Daily Market Reports | Mar 27 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)
ALQ APM ASM BKW CAJ COI COL FSF GMD HLS IDX MEI (2) NHC ORG RKN SHL WEB (2) WOW
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $12.91
Jarden rates ((ALQ)) as Buy (1) -
Reflecting a marked deterioration in Nuvisan's earnings over the 2H of FY24, notes Jarden, ALS Ltd has announced the purchase of the remaining 51% equity outstanding in the company will occur on March 31 for nil consideration.
The broker expects ongoing volatility for the ALS Ltd share price given a general lack of conviction around the execution of the turnaround plans for Nuvisan, and uncertainty about how/when industry conditions will improve.
Jarden's Buy rating is retained and the target eases to $13.70 from $13.80.
Back on March 22, Jarden had raised the target to $13.80 from $13.40 based on positives contained within recent reporting by Life Sciences companies.
This report was published on March 26, 2024.
Target price is $13.70 Current Price is $12.91 Difference: $0.79
If ALQ meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $12.29, suggesting downside of -4.8%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 40.70 cents and EPS of 64.40 cents.
At the last closing share price the estimated dividend yield is 3.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 65.2, implying annual growth of 13.1%.
Current consensus DPS estimate is 39.3, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 19.8.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 40.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 3.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 67.4, implying annual growth of 3.4%.
Current consensus DPS estimate is 40.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 19.2.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APM APM HUMAN SERVICES INTERNATIONAL LIMITED
Healthcare - Overnight Price: $1.63
Canaccord Genuity rates ((APM)) as Buy (1) -
APM Human Services International has secured new North American contracts totalling $1bn over five years, including the Phase 3 contract in Ontario which is set to commence operations in late FY25, along with four additional Job Corps awards and multiple Workforce contracts in the US.
The new contract wins offer APM additional revenue visibility over the medium term, Canaccord Genuity suggests, and APM was well positioned to be awarded additional work given existing Ontario and Job Corps agreements.
Hold and $2.00 target retained, reflecting the takeover offer on the table.
This report was published on March 21, 2024.
Target price is $2.00 Current Price is $1.63 Difference: $0.37
If APM meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $1.78, suggesting upside of 9.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 6.20 cents and EPS of 12.20 cents.
At the last closing share price the estimated dividend yield is 3.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.36.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.2, implying annual growth of -4.4%.
Current consensus DPS estimate is 8.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.6.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 7.10 cents and EPS of 14.30 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.2, implying annual growth of 26.8%.
Current consensus DPS estimate is 10.0, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 11.5.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASM AUSTRALIAN STRATEGIC MATERIALS LIMITED
Rare Earth Minerals - Overnight Price: $1.43
Petra Capital rates ((ASM)) as Hold (3) -
Petra Capital believes a Letter of Intent for US$600m in potential debt financing for Australian Strategic Materials' Dubbo critical minerals project could be a catalyst for further customer and financing discussions in North America.
While non-binding and conditional, the LOI from the United States Export-Import Bank (EXIM) potentially improves the company's funding position and covers a material portion of the -$1.68bn capex requirement, explains the broker.
The target rises to $1.54 from $1.29 and the Hold rating is maintained.
This report was published on March 22, 2024.
Target price is $1.54 Current Price is $1.43 Difference: $0.11
If ASM meets the Petra Capital target it will return approximately 8% (excluding dividends, fees and charges).
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BKW BRICKWORKS LIMITED
Building Products & Services - Overnight Price: $27.95
Jarden rates ((BKW)) as Neutral (3) -
First half earnings (EBIT) margins for Brickworks were well managed, notes Jarden, and beat consensus expectations.
Year-on-year earnings for Building Products Australia and North America increased by 48% and 50%, respectively, driven by strong price and cost management (particularly in Australia), note the analysts.
Management's recently completed five-year plant rationalisation program should lead to improving unit costs, and a freeing-up of surplus land, explains the broker, leading to a lower forward capex profile.
The Neutral rating is unchanged and the target price eases to $28.50 from $28.75.
This report was published on March 22, 2024.
Target price is $28.50 Current Price is $27.95 Difference: $0.55
If BKW meets the Jarden target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $30.80, suggesting upside of 10.2%(ex-dividends)
The company's fiscal year ends in July.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 67.00 cents and EPS of 28.50 cents.
At the last closing share price the estimated dividend yield is 2.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 98.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.0, implying annual growth of -92.3%.
Current consensus DPS estimate is 62.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 139.8.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 199.30 cents.
At the last closing share price the estimated dividend yield is 2.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 135.2, implying annual growth of 576.0%.
Current consensus DPS estimate is 64.2, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 20.7.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE