Daily Market Reports | Apr 08 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
3PL AMP ASB AUB AVA BKW BOE BPT CGF (2) CIA CLV CNB COE CXM EVN HUB IAG IFL KAR LEL LNW MFG MPL NHF NWL ORA (2) PER PPT PTM QBE (2) RFG RHC SDF SUN (2) SYA TWE WGX WR1
3PL 3P LEARNING LIMITED
Education & Tuition - Overnight Price: $1.23
Taylor Collison rates ((3PL)) as Speculative Buy (1) -
3P Learning's 1H result on February 20 was largely transitional, though Taylor Collison notes all key strategies are now in place and management is well positioned to capitalise on future opportunities.
Having re-acquired Reading Eggs US school's distribution rights, the broker highlights 3P Learning now owns distribution of all products globally, which allows management to focus on the lucrative US schools market.
As the peak for development development costs has passed, the analyst expects margin expansion as revenue growth outpaces cost growth.
Also assisting margins, the company is focusing upon the highest growth opportunities and has reduced investment in low priority areas to achieve $5m of annualised savings from March 2024, explains Taylor Collison.
The target rises to $1.64 from $1.46 and the Speculative Buy rating is maintained.
This report was published on March 26, 2024.
Target price is $1.64 Current Price is $1.23 Difference: $0.41
If 3PL meets the Taylor Collison target it will return approximately 33% (excluding dividends, fees and charges).
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 4.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.60.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.10.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMP AMP LIMITED
Wealth Management & Investments - Overnight Price: $1.17
Jarden rates ((AMP)) as Neutral (3) -
After a second consecutive quarter of outsized returns on global equity markets, Jarden makes strong positive adjustments (3% on average) to FY24 funds under management (FUM) forecasts for wealth managers under research coverage.
The broker maintains an Neutral rating for AMP, but raises the target to $1.20 from $1.15.
The largest upgrades go to Netwealth Group, as it is a pure-play platform provider, and Insignia Group which has stronger leverage given thinner operating margins. AMP has non-platform earnings which dilute some of the benefits of the recent global equity rally.
The broker prefers both Challenger and Insignia Financial in the space.
This report was published on April 4, 2024.
Target price is $1.20 Current Price is $1.17 Difference: $0.035
If AMP meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $1.11, suggesting downside of -5.1%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 6.00 cents and EPS of 8.08 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.0, implying annual growth of 1011.1%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 16.7.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 7.00 cents and EPS of 10.50 cents.
At the last closing share price the estimated dividend yield is 6.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.10.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.7, implying annual growth of 38.6%.
Current consensus DPS estimate is 6.9, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.1.
Market Sentiment: 0.0
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: $2.29
Petra Capital rates ((ASB)) as Buy (1) -
Petra Capital suggests the indicative takeover launched by Hanwha Group to acquire Austal for $2.825/share in cash is opportunistic and unlikely to succeed.
The Australian government plans to establish a sovereign shipbuilding capability, in part by leveraging the AUKUS agreement, which may make obtaining regulatory approval for the takeover difficult, in the broker's view.
Management at Austal have not yet granted the suitor access to its data room given concerns that it will fail to get regulatory approvals, though “remains open to engagement with Hanwha”.
The Buy rating and target price of $3.08 are retained.
This report was published on April 3, 2024.
Target price is $3.08 Current Price is $2.29 Difference: $0.79
If ASB meets the Petra Capital target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $2.68, suggesting upside of 17.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 7.50 cents and EPS of 12.10 cents.
At the last closing share price the estimated dividend yield is 3.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.93.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 1.7%.
Current consensus EPS estimate suggests the PER is 48.7.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 8.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 3.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.27.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 1.4%.
Current consensus EPS estimate suggests the PER is 18.6.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AUB AUB GROUP LIMITED
Insurance - Overnight Price: $29.07
Jarden rates ((AUB)) as Overweight (2) -
Global equity markets have posted a second consecutive quarter of outsized returns, underpinning positive March quarter mark-to-market investment gains across Jarden's insurance coverage universe.
The broker suggests general insurer earnings should be further supported by CAT budget beats over the quarter, particularly for the domestic general insurers, which are now past their peak exposure period.
Overall, Jarden prefer general insurer exposures over private health insurers and brokers, with Buy-rated QBE Insurance the top pick.
In the broker category, the target for AUB Group rises to $33.85 from $32.95 and the Overweight rating is unchanged.
This report was published on April 4, 2024.
Target price is $33.85 Current Price is $29.07 Difference: $4.78
If AUB meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $34.82, suggesting upside of 19.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 80.00 cents and EPS of 154.10 cents.
At the last closing share price the estimated dividend yield is 2.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 154.5, implying annual growth of 136.4%.
Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 18.9.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 99.00 cents and EPS of 179.20 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 169.5, implying annual growth of 9.7%.
Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 17.2.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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