Daily Market Reports | May 16 2024
This story features ANZ GROUP HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: ANZ
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COMPANIES DISCUSSED IN THIS ISSUE
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ANZ ARB AUB BRG COF CWY EDV EVN IPH (2) LAU LOT PNI QIP VSL
ANZ ANZ GROUP HOLDINGS LIMITED
Banks – Overnight Price: $27.68
Jarden rates ((ANZ)) as Neutral (3) –
ANZ Bank reported 1H24 results were slightly softer due to higher operating costs, even as the net interest margin (NIM) showed a modest improvement, according to Jarden.
The reported cash profit met the broker's estimates largely due to lower bad debt provisions offseting the higher costs.
Management indicated margins are expected to remain stable into 2H24 and strong 1H24 market income is expected to normalise but still contribute significantly to the revenue mix. Credit quality remains sound, highlights the analyst.
Jarden upgrades EPS forecasts for 2024 and 2025 by 1.75% and 1.3%, respectively, reflecting lower bad and doubtful debts and operational efficiencies.
Neutral rating and the target raised to $29 from $28.80.
This report was published on May 7, 2024.
Target price is $29.00 Current Price is $27.68 Difference: $1.32
If ANZ meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $27.57, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 162.00 cents and EPS of 237.00 cents.
At the last closing share price the estimated dividend yield is 5.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.68.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 225.4, implying annual growth of -4.8%.
Current consensus DPS estimate is 165.0, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.4.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 163.00 cents and EPS of 241.00 cents.
At the last closing share price the estimated dividend yield is 5.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 225.7, implying annual growth of 0.1%.
Current consensus DPS estimate is 167.3, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 12.4.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARB ARB CORPORATION LIMITED
Automobiles & Components – Overnight Price: $39.20
Wilsons rates ((ARB)) as Overweight (1) –
The trading update from ARB Corp showed 2.1% growth in year-to-date (YTD) sales for FY24, and 3Q24 sales rose 6.4%, broadly in line with analyst expectations at Wilsons.
Domestic aftermarket sales grew 5%, OEM sales surged by 42%, though exports saw a -9% decline, year-to-date.
Management remains positive on the outlook into the 1H25 with the company set to spend -$46m on capital expenditures in FY24.
The analyst highlights the expansion of its distribution network in the USA and enhancing fitment capacity in Australia, contributing to improved productivity in recent months.
Additionally, ARB is preparing for new store openings in Australia and the USA, and launching new products like the MT-64 Shock Absorber, which has seen strong initial demand.
Earnings forecasts are revised by -3% for FY24 EPS. Overweight rating and the target moves to $44.39 from $45.69.
This report was published on May 9, 2024.
Target price is $44.39 Current Price is $39.20 Difference: $5.19
If ARB meets the Wilsons target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $40.58, suggesting upside of 2.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 71.00 cents and EPS of 125.50 cents.
At the last closing share price the estimated dividend yield is 1.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.24.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 127.5, implying annual growth of 18.1%.
Current consensus DPS estimate is 68.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.1.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 79.00 cents and EPS of 136.60 cents.
At the last closing share price the estimated dividend yield is 2.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.70.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 141.0, implying annual growth of 10.6%.
Current consensus DPS estimate is 75.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 28.2.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AUB AUB GROUP LIMITED
Insurance – Overnight Price: $31.00
Jarden rates ((AUB)) as Overweight (2) –
AUB Group reported a trading update, highlighting "favourable trading momentum", observes Jarden.
The company is expected to achieve FY24 NPAT towards the upper end of the $161-171m guidance range, management noted.
Jarden estimates this as around 2% upside to current FY24 UNPAT forecasts, largely driven by strong performance across Australian Broking and Agency divisions and ongoing delivery of Tysers synergies, versus current consensus forecasts.
The analyst expects the full Tysers synergies and divisional EBIT margin improvements to offset a slowing commercial cycle.
Overweight rating and $33.85 target retained.
This report was published on May 7, 2024.
Target price is $33.85 Current Price is $31.00 Difference: $2.85
If AUB meets the Jarden target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.82, suggesting upside of 12.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 80.00 cents and EPS of 154.10 cents.
At the last closing share price the estimated dividend yield is 2.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.12.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 154.5, implying annual growth of 136.4%.
Current consensus DPS estimate is 76.3, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 20.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 99.00 cents and EPS of 179.20 cents.
At the last closing share price the estimated dividend yield is 3.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.30.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 169.5, implying annual growth of 9.7%.
Current consensus DPS estimate is 97.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.3.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BRG BREVILLE GROUP LIMITED
Household & Personal Products – Overnight Price: $26.50
Petra Capital rates ((BRG)) as Hold (3) –
Breville Group reaffirms its FY24 EBIT growth guidance of 5%-7.5%, translating to an EBIT range of $180.6m-$184.9m, which is broadly in line with consensus of circa $183.5m, as well as Petra Capital's forecast.
The company anticipates 2H24 profit growth of 7.7% from better sales, lower freight costs, and controlled promotions, although increased R&D and marketing spend, along with higher depreciation, are expected to limit EBIT growth to 2.9%.
Looking ahead to FY25, Petra Capital expects growth to rely more on volume, driven by new product launches and geographic expansion with ongoing consumer price sensitivity.
Management retains a stable outlook. Hold rating retained due to macroeconomic headwinds and fair valuation. Target price $24.40.
This report was published on May 7, 2024.
Target price is $24.40 Current Price is $26.50 Difference: minus $2.1 (current price is over target).
If BRG meets the Petra Capital target it will return approximately minus 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $27.02, suggesting upside of 1.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 32.00 cents and EPS of 80.20 cents.
At the last closing share price the estimated dividend yield is 1.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 81.2, implying annual growth of 5.1%.
Current consensus DPS estimate is 32.3, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 32.7.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 35.20 cents and EPS of 93.60 cents.
At the last closing share price the estimated dividend yield is 1.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.31.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 92.1, implying annual growth of 13.4%.
Current consensus DPS estimate is 35.3, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 28.9.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
COF CENTURIA OFFICE REIT
REITs – Overnight Price: $1.25
Moelis rates ((COF)) as Buy (1) –
Centuria Office REIT's 3Q results saw leasing activity at 2.6% of the portfolio, below the average of 3.1%, with total expiries of 10.1k square metres (sqm) in 2H24 and 31.6k sqm in FY25.
Moelis notes an uptick in the vacancy rate to 5.7% from 3.8%, driven by soft demand in Docklands and St Leonards.
The REIT sold the Keswick property for $38.3m, a -4% discount to its December 2023 book value and -14% below June 2023, as part of its balance sheet strategy.
This divestment, along with another recent sale, is expected to reduce gearing to around 39% from 40.9%.
The broker views the assets as undervalued and of relatively good quality with Centuria Office REIT offering a forecast 9.5% yield in FY25, although there remains some balance sheet risk.
Buy rating and the target lowered to $1.88 from $1.97.
This report was published on May 8, 2024.
Target price is $1.88 Current Price is $1.25 Difference: $0.635
If COF meets the Moelis target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $1.38, suggesting upside of 9.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 12.00 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 9.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.9, implying annual growth of N/A.
Current consensus DPS estimate is 12.0, implying a prospective dividend yield of 9.5%.
Current consensus EPS estimate suggests the PER is 9.1.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 11.30 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 9.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.6, implying annual growth of -2.2%.
Current consensus DPS estimate is 11.7, implying a prospective dividend yield of 9.3%.
Current consensus EPS estimate suggests the PER is 9.3.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CWY CLEANAWAY WASTE MANAGEMENT LIMITED
Industrial Sector Contractors & Engineers – Overnight Price: $2.72
Jarden rates ((CWY)) as Overweight (2) –
Cleanaway Waste Management reconfirmed FY24 EBIT guidance around $350m although expectations around depreciation and amortisation increased to $370m-$390m from $360m-$370m.
Jarden highlights the new fleet management initiative aims to reduce maintenance capital expenditures by about -$50m annually, starting in FY25 and should boost free cash flow and improve debt levels.
Management is evaluating Energy-from-Waste (EfW) projects in Victoria and Queensland, with a potential total investment of -$1.0bn-$1.1bn per site.
The analyst is cautiously optimistic on current earnings forecasts with no changes. Landfill optimisation efforts are forecast to underpin FY25 EBIT growth of 14%.
The Overweight rating and target price of $2.85 are retained.
This report was published on May 7, 2024.
Target price is $2.85 Current Price is $2.72 Difference: $0.13
If CWY meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $2.80, suggesting upside of 1.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 4.90 cents and EPS of 7.60 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.79.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.9, implying annual growth of 706.1%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 34.8.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 5.80 cents and EPS of 9.70 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.6, implying annual growth of 21.5%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 28.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EDV ENDEAVOUR GROUP LIMITED
Food, Beverages & Tobacco – Overnight Price: $5.18
Jarden rates ((EDV)) as Overweight (2) –
Jarden believes Endeavour Group is delivering in a tough market, after reviewing 3Q results which revealed a 2.2% year-on-year rise in sales, in line with the broker's estimate.
Market share increased and exit rates were stronger across both hotels and retail, observes the broker.
Cash flow is improving and management is exceeding cost-out expectations, highlights the broker, with -$53m achieved in the 1H compared to the three-year target of more than -$200m.
No other great surprises were noted, and the analysts retain an Overweight rating with a target of $6.30, down from $6.40.
This report was published on May 7, 2024.
Target price is $6.30 Current Price is $5.18 Difference: $1.12
If EDV meets the Jarden target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $5.87, suggesting upside of 13.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 22.30 cents and EPS of 29.50 cents.
At the last closing share price the estimated dividend yield is 4.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.5, implying annual growth of -3.5%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 18.2.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 23.00 cents and EPS of 31.10 cents.
At the last closing share price the estimated dividend yield is 4.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.66.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.1, implying annual growth of 5.6%.
Current consensus DPS estimate is 21.7, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 17.2.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EVN EVOLUTION MINING LIMITED
Gold & Silver – Overnight Price: $3.83
Jarden rates ((EVN)) as Underweight (4) –
Following a get together with management of Evolution Mining, analysts at Jarden reduce the company's target price to $3.02 from $3.16 after adjusting short-to long-term production forecasts.
The broker feels management is unlikely to achieve unchanged FY24 guidance for production of 749koz due to softer expectations in relation to the Red Lake asset.
The Underweight rating is maintained.
This report was published on May 7, 2024.
Target price is $3.02 Current Price is $3.83 Difference: minus $0.81 (current price is over target).
If EVN meets the Jarden target it will return approximately minus 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $4.26, suggesting upside of 9.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 2.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.64.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.2, implying annual growth of 182.8%.
Current consensus DPS estimate is 9.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 15.5.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 12.00 cents and EPS of 36.60 cents.
At the last closing share price the estimated dividend yield is 3.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 38.8, implying annual growth of 54.0%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 10.1.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IPH IPH LIMITED
Legal – Overnight Price: $6.05
Canaccord Genuity rates ((IPH)) as Buy (1) –
IPH has entered a bidding war to acquire Qantm Intellectual Property ((QIP)) with an all-scrip proposal, slightly ahead of existing bids, which would value the target's equity at an equivalent $1.87 per share.
Canaccord Genuity expects the proposed acquisition to be EPS neutral before cost savings, but cost savings could boost the forecast FY25 EPS by 4%.
IPH also released a corporate presentation highlighting its performance relative to the Australian market in patent filings.
The broker highlights a closing the gap and robust transfer of nearly 4,000 new files in FY23 and FY24 to date. This suggests strong underlying operational momentum despite apparent market concerns.
No change to the broker's earnings forecasts. Unchanged Buy rating and $11.55 target price.
This report was published on May 9, 2024.
Target price is $11.55 Current Price is $6.05 Difference: $5.5
If IPH meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $8.35, suggesting upside of 36.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 36.00 cents and EPS of 44.00 cents.
At the last closing share price the estimated dividend yield is 5.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.75.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 45.0, implying annual growth of 57.2%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.6.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 40.00 cents and EPS of 49.00 cents.
At the last closing share price the estimated dividend yield is 6.61%.
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 48.3, implying annual growth of 7.3%.
Current consensus DPS estimate is 36.4, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.7.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Petra Capital rates ((IPH)) as Buy (1) –
IPH Ltd has renewed its attempt to acquire Qantm Intellectual Property ((QIP)) with an improved proposal. The latest offer comprises 0.291 IPH shares and a fully franked special dividend of $0.11 per Qantm share, totaling a value of $1.90 per share.
Petra Capital forecasts the transaction to be low single-digit EPS positive before synergies at current share prices.
Timing of the bid with a depressed IPH share price is not considered ideal, but the broker argues the strategic rationale for the bid makes sense with management's aim to retain market leadership and prevent competitive threats.
The acquisition is still subject to regulatory approvals from ACCC and NZCC, with potential market share growth in Australia to 46.5% from 32%.
The analyst makes no changes to forecasts. A Buy rating and $10.50 target price are maintained.
This report was published on May 9, 2024.
Target price is $10.50 Current Price is $6.05 Difference: $4.45
If IPH meets the Petra Capital target it will return approximately 74% (excluding dividends, fees and charges).
Current consensus price target is $8.35, suggesting upside of 36.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 34.00 cents and EPS of 43.60 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 45.0, implying annual growth of 57.2%.
Current consensus DPS estimate is 34.2, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.6.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 36.50 cents and EPS of 48.20 cents.
At the last closing share price the estimated dividend yield is 6.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.55.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 48.3, implying annual growth of 7.3%.
Current consensus DPS estimate is 36.4, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 12.7.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LAU LINDSAY AUSTRALIA LIMITED
Transportation & Logistics – Overnight Price: $0.95
Wilsons rates ((LAU)) as Overweight (1) –
Lindsay Australia's 2H24 trading update included a downward revision in its FY24 EBITDA guidance to $88m-$94m from around $102m due to ongoing wet weather impacting horticultural volumes, causing a four week east-west rail line outage.
Wilsons notes the company still expects 6% growth in commercial volumes in 2H24 and the analyst revises the FY24 EBITDA forecasts -12% to $89.1m and -16% for FY25.
The brokerage highlights the company's strong market position as the sole national refrigerated logistics provider and argues Lindsay Australia is poised for recovery when conditions improve.
Overweight rating and the target revised to $1.25.
This report was published on May 8, 2024.
Target price is $1.25 Current Price is $0.95 Difference: $0.3
If LAU meets the Wilsons target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $1.34, suggesting upside of 40.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 3.50 cents and EPS of 9.20 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.1, implying annual growth of -11.4%.
Current consensus DPS estimate is 4.4, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 9.4.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 4.20 cents and EPS of 10.60 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.96.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.5, implying annual growth of 23.8%.
Current consensus DPS estimate is 5.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 7.6.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LOT LOTUS RESOURCES LIMITED
Uranium – Overnight Price: $0.45
Canaccord Genuity rates ((LOT)) as Speculative Buy (1) –
Lotus Resources updated the Mineral Resource Estimate (MRE) for the Letlhakane asset in Botswana, showing a reduction to 118.2m pounds of U3O8 (uranium) at 345ppm, from the previous 190.4m pounds at 321ppm.
Canaccord Genuity notes this is within the scope of the analyst's expectations and the company is focusing on enhancing uranium recovery and reducing operational costs by improving feed grade.
Management expect a scoping study in 2024 supporting a valuation of $275m for Letlhakane, based on a long-term U3O8 price assumption of US$90/lb and an AUD/USD exchange rate of 0.68.
The Speculative Buy rating and target price of 54 cents are retained.
This report was published on May 9, 2024.
Target price is $0.54 Current Price is $0.45 Difference: $0.09
If LOT meets the Canaccord Genuity target it will return approximately 20% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PNI PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED
Wealth Management & Investments – Overnight Price: $12.93
Wilsons rates ((PNI)) as Overweight (1) –
Pinnacle Investment Management reported a 6% increase in Funds Under Management (FUM) to $106.0bn as of April 30, 2024, exceeding the forecast of $105.6bn.
Wilsons point to strong international (up $2.8bn) and retail inflows (up $1.1bn), despite subdued domestic institutional inflows.
The broker anticipates better performance fees in the latter half of 2024 and into 2025, supported by Pinnacle's expanding international initiatives.
The broker has adjusted net profit forecasts for FY24 to $81.4m (up 0.7%) and up 1.3% for FY25 to $110.6m on the back of moderate FUM growth assumptions.
Overweight rating and target price revised up 6% to $14.10.
This report was published on May 9, 2024.
Target price is $14.10 Current Price is $12.93 Difference: $1.17
If PNI meets the Wilsons target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $12.21, suggesting downside of -6.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 32.70 cents and EPS of 41.20 cents.
At the last closing share price the estimated dividend yield is 2.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.38.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 39.1, implying annual growth of -0.6%.
Current consensus DPS estimate is 36.9, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 33.4.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 43.90 cents and EPS of 55.20 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.6, implying annual growth of 26.9%.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.4.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
QIP QANTM INTELLECTUAL PROPERTY LIMITED
Legal – Overnight Price: $1.80
Petra Capital rates ((QIP)) as Downgrade to Hold from Buy (3) –
Qantm Intellectual Property has received a new acquisition proposal from IPH Ltd ((IPH)), challenging the existing bid from Adamantem.
Petra Capital assesses the new offer of $0.291 IPH shares plus a fully franked special dividend of $0.11 per Qantm Intellectual Property share, values the offer at $1.90 per share as at May 7.
This bid is approximately 4.6% higher than Adamantem's all-cash offer of $1.817 per share.
The proposed acquisition is subject to approval from both the Australian Competition and Consumer Commission (ACCC) and the New Zealand Commerce Commission due to potential market share concerns given the size of IPH Ltd.
Rating downgraded to Hold from Buy with a $1.76 target.
This report was published on May 9, 2024.
Target price is $1.76 Current Price is $1.80 Difference: minus $0.04 (current price is over target).
If QIP meets the Petra Capital target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 7.50 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.06.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 8.40 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.43.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
VSL VULCAN STEEL LIMITED
Steel & Scrap – Overnight Price: $6.59
Jarden rates ((VSL)) as Neutral (3) –
Jarden has deferred its expectation for a recovery in the building cycle to the beginning of 2025 (six-to-nine months later-than-initially expected), and reduced earnings forecasts for Vulcan Steel. More positively, the analysts note the company is gaining market share.
Management is confident hybrid sites will deliver expanded longer-term margins, highlights Jarden, and is keen to add growth through
potential acquisition, with the recent Ulrich acquisition set to be fully embedded by the end of 2024.
Neutral rating retained. Target price falls to NZ$7.68 from NZ$7.70.
This report was published on May 7, 2024.
Current Price is $6.59. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 21.08 cents and EPS of 28.11 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.44.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 26.82 cents and EPS of 35.79 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 18.41.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
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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