Daily Market Reports | May 20 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
360 BBN CBA FLT HLI IPH JDO JIN LTR MPL (2) NWS ORG ORI PPT PSI PXA QBE REA SGM (2) SUL (3) THL WBC
360 LIFE360 INC
Software & Services - Overnight Price: $15.47
Goldman Sachs rates ((360)) as Buy (1) -
Goldman Sachs assessed the Life360’s 1Q24 results were broadly in line with expectations, with stronger-than-anticipated subscriber net additions.
The analyst views potential upside to FY24 EBITDA guidance, with the recognition of subscription revenue from 1Q24 net adds and high-margin advertising revenue expected to commence in 2H24. Costs look to be under control and offering operating leverage also.
Life360's execution on its international growth strategy, including UK and Australian launches, are viewed positively by Goldman Sachs, , alongside its investment in Hubble Network, Inc., which offers long-term benefits.
The analyst lifts the EBITDA forecasts by 1% for FY24 and 3% for FY25.
Target is raised to $16.05 from $14.20. The Buy rating is reiterated.
This report was published on May 10, 2024.
Target price is $16.05 Current Price is $15.47 Difference: $0.58
If 360 meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $17.31, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 15.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 101.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.8, 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 104.5.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 32.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.34.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 35.9, implying annual growth of 142.6%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 43.1.
This company reports in USD. 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
BBN BABY BUNTING GROUP LIMITED
Apparel & Footwear - Overnight Price: $1.48
Wilsons rates ((BBN)) as Overweight (1) -
Baby Bunting reported an -8% year-on-year decline in like-for-like (LFL) sales in 2H24, which Wilsons assesses as a sharp decline in sales during March and April (-11%) as consumers traded down.
Gross margins fell -70 basis points due to "aggressive competition". Management downgraded net profit guidance to $2m-$4m for FY24, well below the analyst's previous estimate of $9.6m
Wilsons slashes FY24 earnings forecast by -59% and -47% for FY25, but highlights the balance sheet is in relatively good shape.
Overweight rating retained and the target lowered -25% to $1.80.
This report was published on May 10, 2024.
Target price is $1.80 Current Price is $1.48 Difference: $0.325
If BBN meets the Wilsons target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $1.66, suggesting upside of 12.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 1.80 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 47.58.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 3.9, implying annual growth of -47.0%.
Current consensus DPS estimate is 3.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 37.8.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 8.20 cents and EPS of 8.60 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.6, implying annual growth of 120.5%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 17.2.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CBA COMMONWEALTH BANK OF AUSTRALIA
Banks - Overnight Price: $121.04
Goldman Sachs rates ((CBA)) as Sell (5) -
Goldman Sachs has kept a Sell rating for CommBank with a revised price target of $82.61, up from $81.98. The broker adjusted EPS estimates for FY24/25/26 by +1.6%/+0.1%/-1.0%, respectively, reflecting lower bad and doubtful debts (BDDs).
Cash profit from continuing operations in 3Q was approximately $2.4bn, down -3% from the 1H24 quarterly average, but 4% ahead of forecasts due to better-than-expected BDD charges.
The CET1 ratio stands at 11.9%, indicating a capital surplus of $7.7bn above APRA’s minimum requirement.
This report was published on May 9, 2024.
Target price is $82.61 Current Price is $121.04 Difference: minus $38.43 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $93.15, suggesting downside of -23.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 455.00 cents and EPS of 578.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 583.9, implying annual growth of -3.3%.
Current consensus DPS estimate is 458.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 20.7.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 455.00 cents and EPS of 551.00 cents.
At the last closing share price the estimated dividend yield is 3.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.97.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 574.0, implying annual growth of -1.7%.
Current consensus DPS estimate is 464.0, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 21.1.
Market Sentiment: -0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FLT FLIGHT CENTRE TRAVEL GROUP LIMITED
Travel, Leisure & Tourism - Overnight Price: $20.39
Jarden rates ((FLT)) as Buy (1) -
Flight Centre Travel reconfirmed FY24 profit guidance at $300m-$400m, post a strong 3Q24 earnings report including a 60 basis point lift in the profit margin, notes Jarden.
The analyst expects a 2% profit margin is achievable by FY25 based on strong demand for leisure travel and a -13% decline in international airfares.
Total transaction value (TTV) is expected to exceed $23.7bn for FY24.
Jarden is positive on the expansion of higher-margin travel services and effective cost management, which should underpin better earnings.
Buy rating and $23.50 target unchanged.
This report was published on May 9, 2024.
Target price is $23.50 Current Price is $20.39 Difference: $3.11
If FLT meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $24.51, suggesting upside of 20.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 55.00 cents and EPS of 87.70 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 95.7, implying annual growth of 313.7%.
Current consensus DPS estimate is 28.8, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 21.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 91.00 cents and EPS of 138.30 cents.
At the last closing share price the estimated dividend yield is 4.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 135.4, implying annual growth of 41.5%.
Current consensus DPS estimate is 42.9, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 15.1.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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