Daily Market Reports | May 10 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)
ALK ALL AMC ASX BLX BRI CIA CKF DUG HLO IFL IRE LNW LOV MDR NAB PXA QUB RWC SDR TPW WES WOW XRO
LOV LOVISA HOLDINGS LIMITED
Retailing - Overnight Price: $30.92
Jarden rates ((LOV)) as Buy (1) -
Jarden recently highlighted the best ideas from among its coverage of 23 emerging companies.
Temple & Webster continues to be the preferred exposurre, with the stock price having recently retraced after a share price lift post reporting. Other key picks are Lovisa Holdings, SiteMinder, Nick Scali and Universal Store.
The Buy rating and $28.69 target are maintained for Lovisa Holdings.
This report was published on May 2, 2024.
Target price is $28.69 Current Price is $30.92 Difference: minus $2.23 (current price is over target).
If LOV meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $30.36, 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 61.00 cents and EPS of 73.70 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 41.95.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 78.1, implying annual growth of 23.5%.
Current consensus DPS estimate is 74.4, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 39.6.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 75.00 cents and EPS of 93.30 cents.
At the last closing share price the estimated dividend yield is 2.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 100.6, implying annual growth of 28.8%.
Current consensus DPS estimate is 86.4, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 30.7.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
MDR MEDADVISOR LIMITED
Healthcare services - Overnight Price: $0.33
Moelis rates ((MDR)) as Buy (1) -
Gross profit margins in the 3Q for MedAdvisor increased to 63.2%, compared to 60.6% in the previous corresponding period. The rising margin occurred after 42% revenue growth, which was well ahead of the Moelis forecast.
The broker explains the margin uplift was due to a combination of the rebound in digital programs in the US and incremental transaction revenue in A&NZ.
Ongoing expansion of vaccine programs in the US, as well as growth in existing customers, contributed to revenue growth, while a stronger US dollar provided a currency tailwind, explains Moelis.
Price increases and the implementation of transaction revenue in Australia also assisted, notes the analyst.
Management noted THRiV (omni-channel patient engagement) was gaining traction and is now expected to contribute 18% of FY24 US revenue, up from 3% in FY23.
The Buy rating is retained and the target price increases to 41c from 38 cents.
This report was published on May 1, 2024.
Target price is $0.41 Current Price is $0.33 Difference: $0.08
If MDR meets the Moelis target it will return approximately 24% (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 minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 330.00.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 330.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NAB NATIONAL AUSTRALIA BANK LIMITED
Banks - Overnight Price: $33.52
Goldman Sachs rates ((NAB)) as Buy (1) -
A -13% decline in 1H24 cash earnings for National Australia Bank was a slight beat on Goldman Sachs estimates.
The 84c dividend announcement was higher than expected (81c forecast) and management topped up the buyback with another $1.5bn.
Goldman Sachs views the outlook for the bank positively, even with the exposure to the small and medium size business sector.
The broker rates the asset quality as strong. Lending growth in the commercial sector is anticipated to be more robust than the housing sector.
The broker lifts EPS forecasts for FY24 by 2.4% and 2.8% for FY25. A Buy rating is retained and the target price lifts to $34.04 from $33.89.
This report was published on May 2, 2024.
Target price is $34.04 Current Price is $33.52 Difference: $0.52
If NAB meets the Goldman Sachs target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $30.24, suggesting downside of -9.8%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 168.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 222.5, implying annual growth of -5.9%.
Current consensus DPS estimate is 168.5, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 15.1.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 168.00 cents and EPS of 225.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 225.0, implying annual growth of 1.1%.
Current consensus DPS estimate is 169.7, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 14.9.
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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