Daily Market Reports | May 03 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)
29M AGY ATG BXB FMG KGN LIC LYC (2) NST (2) RMD WGX
NST NORTHERN STAR RESOURCES LIMITED
Gold & Silver - Overnight Price: $14.57
Goldman Sachs rates ((NST)) as Neutral (3) -
Northern Star Resources reported a gold production miss for the 3Q24, coming in -9% lower for the quarter on the previous quarter, notes Goldman Sachs.
Sales for Yandal and Pogo were in line but costs were slightly higher than expected. Management retained FY24 guidance at 1600-1700koz, with June quarter gold sales expected to improve.
Goldman Sachs makes no changes to the earnings forecasts. Neutral rating is retained and the target is lowered to $14.50 from $14.60.
This report was published on April 23, 2024.
Target price is $14.50 Current Price is $14.57 Difference: minus $0.07 (current price is over target).
If NST meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.13, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 56.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.7, implying annual growth of -2.1%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 29.3.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 118.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 95.9, implying annual growth of 93.0%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.2.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((NST)) as Overweight (2) -
Higher gold prices came will come to the earnings rescue for Northern Star Resources in FY24 according to Jarden, following a very disappointing set of 3Q24 results across production, cost and sales.
The broker lowers the FY25 production forecasts by -4% accounting for lower grades at Jundee and Pogo and FY24 production estimates are reduced to the lower end of guidance.
Accounting for higher gold prices offsets the production and cost misses and the analyst lifts EBITDA forecasts by 10% for FY24 and 8% for FY25.
Jarden likes the asset mix for the company despite the weaker quarterly results.
An Overweight rating is maintained and the target lifted to $14.10 from $13.70.
This report was published on April 24, 2024.
Target price is $14.10 Current Price is $14.57 Difference: minus $0.47 (current price is over target).
If NST meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.13, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 27.00 cents and EPS of 52.40 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.81.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.7, implying annual growth of -2.1%.
Current consensus DPS estimate is 32.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 29.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 27.00 cents and EPS of 68.30 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 95.9, implying annual growth of 93.0%.
Current consensus DPS estimate is 42.6, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.2.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
RMD RESMED INC
Medical Equipment & Devices - Overnight Price: $32.96
Wilsons rates ((RMD)) as Overweight (1) -
Wilsons analysts maintain their Overweight rating on ResMed, upgrading the price target by 9% to $36, citing significant gross margin expansion as a key driver.
The broker reports 3Q revenue of US$1,197m, a 7% increase year-on-year, was 2% above forecasts, driven by robust sales in both US and Rest of World (ROW) markets.
The report highlights ResMed's gross margin improved by 260 basis points due to efficiencies such as freight cost reductions and inventory management, with further enhancements anticipated.
EPS forecasts for FY24 through FY26 have been raised by 3-5% based on higher device sales and earlier gross margin improvements.
This report was published on April 29, 2024.
Target price is $36.00 Current Price is $32.96 Difference: $3.04
If RMD meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $35.73, suggesting upside of 8.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 29.55 cents and EPS of 117.59 cents.
At the last closing share price the estimated dividend yield is 0.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 118.8, implying annual growth of N/A.
Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 27.7.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 31.99 cents and EPS of 134.81 cents.
At the last closing share price the estimated dividend yield is 0.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.45.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 137.0, implying annual growth of 15.3%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 24.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WGX WESTGOLD RESOURCES LIMITED
Gold & Silver - Overnight Price: $2.20
Petra Capital rates ((WGX)) as Buy (1) -
Petra Capital notes Westgold Resources experienced an extremely challenging March quarter as production fell -12% on the previous corresponding quarter to 52koz, due to wet weather, problems with the crusher at two mills and the cessation of operations at Paddy's Flat.
Total all-in-sustaining-costs (AISC) fell -2% quarter-on-quarter, but mill maintenance costs ticked up 11% over the same period.
The broker remains upbeat on the company, highlighting the merger with Karora Resources as a "supercharger" for production and exploration.
The Buy rating is unchanged and the target lowered to $2.66 from $2.68.
This report was published on April 26, 2024.
Target price is $2.66 Current Price is $2.20 Difference: $0.46
If WGX meets the Petra Capital target it will return approximately 21% (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 3.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 10.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.48.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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