Daily Market Reports | May 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.
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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)
AGY ALK ANG ARX COL CRN IGO IPD MAC OCC ORG PYC QPM SDR SFR (2) SFX SKO TPG
SFX SHEFFIELD RESOURCES LIMITED
Mineral Sands - Overnight Price: $0.47
Petra Capital rates ((SFX)) as Buy (1) -
Petra Capital lowers its target for Sheffield Resources to $1.11 from $1.26 following a March quarter where final product recoveries were impacted by the presence of oversize material. There was -15% less final product delivered for each tonne of ore.
Management noted an improvement in the June quarter, and now expects nameplate rates will be reached at the end of the quarter. The broker highlights a strong start for sales, with $4.9m of zircon and $5.8m of TiO2 sold in April.
After taking into account operating costs, debt repayments and capex, Petra Capital forecasts a cash positive September quarter.
The Buy rating is retained.
This report was published on May 1, 2024.
Target price is $1.11 Current Price is $0.47 Difference: $0.635
If SFX meets the Petra Capital target it will return approximately 134% (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 0.00 cents and EPS of minus 10.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.70.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 237.50.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SKO SERKO LIMITED
Software & Services - Overnight Price: $3.09
Jarden rates ((SKO)) as Overweight (2) -
Serko and Booking.com have extended their relationship for another five years, but the new contract outlines a change in revenue share to a tiered volume structure from a 50% commission rate, cautions Jarden.
This change sees the incremental commission rate fall to around 13% on volumes of circa 8.6m completed room nights (CRN's), explain the analysts.
More positively, the broker feels the new arrangement reflects a proof point of the platform's maturity, validation of the technology stack, and an acknowledgment of the magnitude of potential volume growth. It's felt the volume target remains achievable.
Separately, management pre-released key metrics ahead of its FY24 results on May 28. Total income was weaker than Jarden expected as CRN growth slowed. Implied 2H revenue of around NZ$35m was below the NZ$36m achieved in the 1H.
The Overweight rating is maintained and the target eases to NZ$4.85 from NZ$4.95.
This report was published on May 1, 2024.
Current Price is $3.09. Target price not assessed.
Current consensus price target is $5.18, suggesting upside of 67.5%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 17.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -9.3, 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 N/A.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.74 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 417.57.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.3, 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 134.3.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TPG TPG TELECOM LIMITED
Telecommunication - Overnight Price: $4.42
Goldman Sachs rates ((TPG)) as Neutral (3) -
Goldman Sachs has a positive view on the Multi-Operator Core Network (MOCN) regional agreement between TPG Telecom and Optus, which will extend the mobile coverage to 98.4% of the population, via tripling of its regional metro locations.
TPG Telecom is set to remunerate Optus a net payment (ex-spectrum receipts) of -$1.17bn over 11 years.
As the ACCC is yet to approve the deal, there are no adjustments to earnings forecasts and the deal is assessed as a negative for Telstra ((TLS)).
A Neutral rating and $5.40 target price are unchanged.
This report was published on April 29, 2024.
Target price is $5.40 Current Price is $4.42 Difference: $0.98
If TPG meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.28, suggesting upside of 19.5%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.11.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.4, implying annual growth of 407.6%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 33.0.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 18.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.11.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.9, implying annual growth of 33.6%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 24.7.
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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