Daily Market Reports | Apr 30 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.
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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 AIZ ALC AMA ANZ BGL BOE BXB CBA CGF CMM DSE EVS GDG GLN GMD GOR (2) ILU (2) KAR KCN LIC MAC MDR NAB OBM PLS (3) PLT PMT PPS QOR RED RMS S32 SDV SHV SLR STX WBC WDS
SHV SELECT HARVESTS LIMITED
Agriculture - Overnight Price: $3.63
Wilsons rates ((SHV)) as Overweight (1) -
On Wilsons's assessment, Select Harvests released a mixed trading update, revising FY24 crop volume to 28.5-30.0kt and almond price expectations to $7.30-7.50/kg, both slightly below prior forecasts.
These adjustments are not seen as significantly detracting from the substantial year-over-year improvement in earnings. The broker explains management's strategic focus remains on improving operating earnings to meet fixed charge covenant requirements and on generating sufficient free cash flow to normalise gearing levels.
Wilsons retains an Overweight rating with a slightly reduced 12-month target price of $5.39, down from $5.53, reflecting minor earnings downgrades and valuation adjustments based on a lower projected earnings capitalisation.
FY24 EPS is now forecast to be negative, but with still strong growth expected for FY25 and FY26.
This report was published on April 24, 2024.
Target price is $5.39 Current Price is $3.63 Difference: $1.76
If SHV meets the Wilsons target it will return approximately 48% (excluding dividends, fees and charges).
Current consensus price target is $4.68, suggesting upside of 33.0%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 165.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.7, 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 130.4.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 26.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.1, implying annual growth of 607.4%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 18.4.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SLR SILVER LAKE RESOURCES LIMITED
Gold & Silver - Overnight Price: $1.46
Moelis rates ((SLR)) as Buy (1) -
It is Moelis' view Silver Lake Resources delivered a strong Q3 production report, significantly exceeding expectations. Gold sales reached 64.5 koz, surpassing the forecast of 53.3 koz, with an AISC of $1,522/oz, well below the expected $2,051/oz.
The cash position strengthened to $342m, above the prior $305.1m. Exploration updates from the Sugar Zone indicate potential resource upgrades, highlighted by significant drill intercepts.
As per the broker, the proposed merger with Red 5 ((RED)) is expected to complete by the fiscal year-end. Buy rating retained with a target price of $1.70.
This report was published on April 26, 2024.
Target price is $1.70 Current Price is $1.46 Difference: $0.245
If SLR meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.99.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.49.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
STX STRIKE ENERGY LIMITED
NatGas - Overnight Price: $0.22
Wilsons rates ((STX)) as Overweight (1) -
On Wilsons' observation, Strike Energy's March quarter results showed production and pricing in line with market expectations.
The company is gearing up for the drilling of Walyering-7, anticipated to potentially double the 2P reserves of the field. Wilsons states, this well, along with two others planned for the exploration campaign this year, positions Strike Energy for significant near-term growth opportunities.
Production for the quarter was slightly below estimates at 24 TJ/d due to demand constraints, but upcoming infrastructure developments with APA Group ((APA)) might well expand sales potential, suggests the broker.
Price target lowered to 33c from 34c. Overweight rating retained. Estimates have swung around significantly, in either direction.
This report was published on April 24, 2024.
Target price is $0.33 Current Price is $0.22 Difference: $0.11
If STX meets the Wilsons target it will return approximately 50% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 16.7%(ex-dividends)
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 minus 229.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 0.10.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.5, 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 44.0.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 66.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 0.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.4, implying annual growth of 180.0%.
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: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WBC WESTPAC BANKING CORPORATION
Banks - Overnight Price: $25.76
Jarden rates ((WBC)) as Upgrade to Overweight from Neutral (2) -
Jarden anticipates a resilient but muted half for the four bank majors, expecting sector profits to decline -1% half-on-half to $15.6bn as margin erosion and rising costs continue to impact.
While signs of moderating margin pressure will remain a key consideration of the reporting season, the broker is also interested in indications of further returns of excess provisions. Jarden considers it likely each major will announce new capital returns of $1.0-1.5bn.
The broker estimates a -3% half-on-half profit decline from Westpac to $3.44bn. With the bank still undergoing its existing buybacks, Jarden notes Westpac may choose to return capital through special dividends rather than a top up of its buyback.
The rating is upgraded to Overweight from Neutral and the target price increases to $25.70 from $23.50.
This report was published on April 23, 2024.
Target price is $25.70 Current Price is $25.76 Difference: minus $0.06 (current price is over target).
If WBC meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $24.22, suggesting downside of -6.4%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 143.00 cents and EPS of 189.00 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.63.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 188.6, implying annual growth of -8.1%.
Current consensus DPS estimate is 142.6, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 13.7.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 143.00 cents and EPS of 184.00 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 190.6, implying annual growth of 1.1%.
Current consensus DPS estimate is 144.4, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.6.
Market Sentiment: -0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WDS WOODSIDE ENERGY GROUP LIMITED
NatGas - Overnight Price: $28.19
Jarden rates ((WDS)) as Neutral (3) -
Jarden found positives in Woodside Energy's quarterly report, despite weak liquids production and low realised gas prices. The company reported a -6% quarterly production decline to 44.9m barrels of oil equivalent, as the Pyrenees FPSO head to dry rock.
Sales volumes also declined -7% quarterly, partly on a material underlift at Pluto.
The extension of the Pluto gas processing agreement at the North West Shelf and a potential pivot from high spot gas exposure, however, were well received by Jarden.
The Neutral rating is retained and the target price decreases to $29.25 from $30.00.
This report was published on April 22, 2024.
Target price is $29.25 Current Price is $28.19 Difference: $1.06
If WDS meets the Jarden target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $33.80, suggesting upside of 19.1%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 167.53 cents and EPS of 210.78 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.37.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 195.1, implying annual growth of N/A.
Current consensus DPS estimate is 155.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 14.5.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 150.78 cents and EPS of 191.14 cents.
At the last closing share price the estimated dividend yield is 5.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.75.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 210.5, implying annual growth of 7.9%.
Current consensus DPS estimate is 168.1, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.5.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.
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