Daily Market Reports | Mar 28 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 ALQ AQZ ARL ARX CXO FPH IAG LNW LRS MOZ MRM PMV (3) PTM RMD SNL SPZ SUN WBC
29M 29METALS LIMITED
Copper - Overnight Price: $0.36
Jarden rates ((29M)) as Downgrade to Underweight from Neutral (4) -
Jarden downgrades its rating for 29Metals to Underweight from Neutral and lowers the target to 30c from 38c following suspension of operations at Capricorn Copper due to heavy rainfall in the March quarter.
Capricorn Copper's earnings forecasts are largely removed from the broker's financial model and a $50m valuation is now assumed.
With the new Managing Director Mr Palmer commencing on May 1, the analysts are hopeful of a full reset on the Capricorn asset.
Jarden continues to believe additional liquidity will be required with a forecast for the existing cash balance to be depleted by the end of 2024. A $60m liquidity event is assumed.
This report was published on March 28, 2024.
Target price is $0.30 Current Price is $0.36 Difference: minus $0.06 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.43, suggesting upside of 20.4%(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 9.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.91.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -8.4, 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 6.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.3, 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 15.7.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $13.05
Goldman Sachs rates ((ALQ)) as Buy (1) -
Goldman Sachs suggests the focus for management moving forward will be on integration and business improvement of recent acquisitions, rather than additional scope growth.
ALS Ltd's FY22-FY27 scope growth target is to acquire around $500m of revenue.
The recent acquisitions of Northeast US-based York Analytical Laboratories and Europe-based Wessling Holding GmbH & Co. KG will add circa $195m to scope growth of around $150m in FY23, explain the analysts.
The total acquisition cost for both are approximately -$225m, to be debt funded from existing facilities.
Buy. Target $13.60.
This report was published on March 27, 2024.
Target price is $13.60 Current Price is $13.05 Difference: $0.55
If ALQ meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $12.29, suggesting downside of -6.8%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 65.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.08.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 20.2.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 67.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 67.2, implying annual growth of 3.1%.
Current consensus DPS estimate is 40.8, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AQZ ALLIANCE AVIATION SERVICES LIMITED
Transportation & Logistics - Overnight Price: $2.90
Wilsons rates ((AQZ)) as Overweight (1) -
Alliance Aviation Services has announced the likely reallocation of four E190 aircrafts to its operating fleet, previously flagged for parting out, to meet strong demand.
As per Wilsons, the announcement makes no change to the capital commitment made by Alliance Aviation Services to purchase the E190s, but will likely result in modest earnings upgrades in outer years.
The Overweight rating and target price of $4.35 are retained.
This report was published on March 27, 2024.
Target price is $4.35 Current Price is $2.90 Difference: $1.45
If AQZ meets the Wilsons target it will return approximately 50% (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 35.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.15.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.36.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARL ARDEA RESOURCES LIMITED
Nickel - Overnight Price: $0.72
Petra Capital rates ((ARL)) as Buy (1) -
Ardea Resources is negotiating a binding cooperation agreement relating the funding of the Kalgoorlie nickel project definitive feasibility study with the Sumitomo Metal Mining-Mitsubishi Corporation consortium, having agreed to a scope for work and budget for the study in February.
An agreement between all parties is expected to be completed in April, which Petra Capital notes reflects a slight slippage in the timeline. The broker does not consider this a major set back, but rather likely reflective of typical negotiation delays.
The Buy rating and target price of 74 cents are retained.
This report was published on March 28, 2024.
Target price is $0.74 Current Price is $0.72 Difference: $0.015
If ARL meets the Petra Capital target it will return approximately 2% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.68.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 23.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.06.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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