Daily Market Reports | Apr 12 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)
ASX AVA CXO DVP IGO JIN LRK LTR ORR PLS PRU PSC TLC WES
ASX ASX LIMITED
Wealth Management & Investments - Overnight Price: $63.80
Jarden rates ((ASX)) as Neutral (3) -
While equity turnover and capital raisings remain depressed, futures volume growth of 8-9% is expected over FY25-26. Jarden thinks the recovery in futures volumes plus tighter cost control could support 2-5% upside to current consensus forecasts.
The broker does emphasise tighter cost control is needed as broader revenue trends remain challenging.
Price target grows to $63.30 from $62.70. Neutral. Forecasts have been lifted.
This report was published on April 10, 2024.
Target price is $63.30 Current Price is $63.80 Difference: minus $0.5 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $62.68, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 209.40 cents and EPS of 246.30 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 25.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 245.0, implying annual growth of 49.5%.
Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 26.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 225.90 cents and EPS of 265.70 cents.
At the last closing share price the estimated dividend yield is 3.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 254.7, implying annual growth of 4.0%.
Current consensus DPS estimate is 216.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 25.0.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AVA AVA RISK GROUP LIMITED
Hardware & Equipment - Overnight Price: $0.14
Canaccord Genuity rates ((AVA)) as Buy (1) -
Ava Risk's three-year growth plans suggest revenues are poised to at least double by then, Canaccord Genuity points out. The most positive scenario has even more upside in mind.
The broker has adopted a more conservative approach, placing its forecasts near the bottom end of the suggested trajectory guidance. This, the broker highlights, still suggests "substantial" growth lays ahead.
Buy rating retained while a re-modeling of the fresh input has sliced off -3c from the broker's valuation; price target tumbles to 30c from 33c.
This report was published on April 9, 2024.
Target price is $0.30 Current Price is $0.14 Difference: $0.165
If AVA meets the Canaccord Genuity target it will return approximately 122% (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 17.00 cents and EPS of minus 0.66 cents.
At the last closing share price the estimated dividend yield is 125.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 20.45.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.44.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CXO CORE LITHIUM LIMITED
New Battery Elements - Overnight Price: $0.16
Goldman Sachs rates ((CXO)) as Sell (5) -
Further supply rationing of lithium is needed to reduce the 2024 and 2025 surplus, in Goldman Sachs’ opinion, and the recent rally in lithium prices should not be interpreted as the end of the bear market.
The broker forecasts a 2024 lithium surplus of 150kt, down from 225kt previously, which largely reflects a trend of delays to ramp-up paths, meaning little to no impact on the supply path post-2024. A larger surplus of 336kt is now expected in 2025, up from 288kt.
Goldman's preferred lithium exposure from stocks under research coverage is Buy-rated IGO due to undervaluation and a positive free cash flow outlook.
The Sell rating is maintained for Core Lithium and the target eases to 12c from 13c.
This report was published on April 9, 2024.
Target price is $0.12 Current Price is $0.16 Difference: minus $0.04 (current price is over target).
If CXO meets the Goldman Sachs target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.78.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 53.33.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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