Daily Market Reports | May 07 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)
ABC ANZ AQZ BPT CHC CMM CPU CRD DHG EBO KGN LIC M7T MIN MVF NCK NXS PBH PPT PRU QBE REA RED RMD RRL (2) SEK TAH WGX
ABC ADBRI LIMITED
Building Products & Services - Overnight Price: $3.16
Jarden rates ((ABC)) as Neutral (3) -
Adbri has been awarded a $50m Federal government fund grant (“Powering the Regions Fund”) for the Birkenhead project. The grant aims to incentivise regional investment as part of targeting cleaner energy/carbon footprints.
The project is designed to increase production capacity, improve cement grinding efficiencies and further decarbonise the company's South Australian operations, explains the broker.
The analysts believe such an enhanced grinding capacity will help restore recently lost regional share.
Regarding the bid for Adbri from Irish group CRH, Jarden believes the threshold for a counter bid is very high, given the high-quality cash offer and CRH's favourable reputation.
The Neutral rating and $3.20 target are maintained.
This report was published on April 26, 2024.
Target price is $3.20 Current Price is $3.16 Difference: $0.04
If ABC meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $3.20, suggesting upside of 1.3%(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 17.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.5, implying annual growth of 9.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.4.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.63.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.1, implying annual growth of 3.9%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 19.6.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANZ ANZ GROUP HOLDINGS LIMITED
Banks - Overnight Price: $28.77
Goldman Sachs rates ((ANZ)) as Buy (1) -
ANZ Bank reports 1H results on May 7 and Goldman Sachs forecasts cash earnings will fall by -4% on the previous corresponding period to $3,683m.
For the sector, the broker forecasts margins will trend sequentially lower by around -3bps in the first half.
The broker also expects management to announce a $1bn on-market buyback along with an interim dividend of 81cps. ANZ Bank is the preferred exposure from among the majors.
Target $27.69. Buy.
This report was published on April 26, 2024.
Target price is $27.69 Current Price is $28.77 Difference: minus $1.08 (current price is over target).
If ANZ meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $27.98, suggesting downside of -2.8%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 162.00 cents and EPS of 223.80 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 221.7, implying annual growth of -6.4%.
Current consensus DPS estimate is 162.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 13.0.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 162.00 cents and EPS of 207.80 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 223.2, implying annual growth of 0.7%.
Current consensus DPS estimate is 163.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.9.
Market Sentiment: -0.2
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: $3.15
Wilsons rates ((AQZ)) as Overweight (1) -
Alliance Aviation Services announced the delivery deferral of E190's from AerCap to 12 aircraft in 2024 at a estimated cost of -$128-$144m, against 17 aircraft at a cost of -$182m-$$204m, previously.
ANZ Bank has extended an existing $67m term loan facility from expiration in January 2025, for an additional three years, as well as a $50m increase in the facility for the capital expenditure program.
Wilsons doesn't envisage any change to forecasts, as the company has confirmed in the near term less "parting-out" of aircraft.
Overweight rating unchanged and the target price is raised to $4.47 from $4.35.
This report was published on April 30, 2024.
Target price is $4.47 Current Price is $3.15 Difference: $1.32
If AQZ meets the Wilsons target it will return approximately 42% (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 8.85.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 39.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.04.
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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