Daily Market Reports | May 21 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)
ABB ABC AD8 ASX CBA CHL COH COL CSL CSR CU6 DHG DMP FBU FWD GUD (2) HLI IEL (2) IMM JBH (2) JIN KCN LLL MXI OML ORI PPM QBE REA RHC SYR TPW
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $3.62
Wilsons rates ((ABB)) as Overweight (1) -
Aussie Broadband reported a weaker-than-expected 3Q24 trading update, comments Wilsons.
Residential and Enterprise & Government segments underperformed expectations, leading to a moderation in forecasts for 4Q24 net additions, notes the broker, but the forecasts are considered achievable off the back of the 4Q24 trading performance.
Management retained the FY24 EBITDA guidance of $116m-$121m with capex of -$40m-$45m.
Overweight rating unchanged and the target is lowered by -5% to $4.52.
This report was published on May 14, 2024.
Target price is $4.52 Current Price is $3.62 Difference: $0.9
If ABB meets the Wilsons target it will return approximately 25% (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 14.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.46.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 19.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.66.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ABC ADBRI LIMITED
Building Products & Services - Overnight Price: $3.18
Goldman Sachs rates ((ABC)) as No Rating (-1) -
The Goldman Sachs analyst introduced an Adbri EPS estimate for FY26 at $0.19, with a 1% increase in EBIT to $207m and a 4% decline in underlying NPAT to $203m.
The changes are not viewed as material, with the broker noting the company's performance has been impacted by fluctuating demand in the construction sector, with ongoing challenges in managing operational costs.
The analyst does not expect any significant shifts in the company's overall financial outlook. The stock is not rated.
This report was published on May 15, 2024.
Current Price is $3.18. Target price not assessed.
Current consensus price target is $3.20, suggesting upside of 0.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 16.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.88.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 2.9, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 20.5.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.9, implying annual growth of 2.6%.
Current consensus DPS estimate is 8.7, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 20.0.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AD8 AUDINATE GROUP LIMITED
Hardware & Equipment - Overnight Price: $16.24
Canaccord Genuity rates ((AD8)) as Buy (1) -
Audinate Group updated the market at its Investor Day and Canaccord Genuity points to the central role this company holds in the networked audio market, supported by over 4,000 Dante-enabled products from 600-plus OEM manufacturers.
The broker notes cloud-based initiatives, such as Dante Connect and Dante Director, aim to centralise AV control, offering substantial monetisation opportunities.
Canaccord Genuity forecasts sales growth to $148.3m by FY2026 from $69.7m in FY2023, with EBITDA expected to increase to $45.0m from $13.5m over the same period.
Buy rating and $20 target unchanged.
This report was published on May 16, 2024.
Target price is $20.00 Current Price is $16.24 Difference: $3.76
If AD8 meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $20.15, suggesting upside of 19.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 EPS of 13.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 124.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.2, implying annual growth of -33.1%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 182.8.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 108.27.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.9, implying annual growth of 72.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 105.8.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASX ASX LIMITED
Wealth Management & Investments - Overnight Price: $62.92
Goldman Sachs rates ((ASX)) as Sell (5) -
Goldman Sachs initiates coverage of ASX with a Sell rating and a $60 target price.
The broker expects ASX will continue to experience regulatory, cost, and margin pressures with downside risks and points to ongoing elevated capital expenditure on the CHESS replacement and technology enhancement.
ASX also produces a lower return on equity (ROE) for the Clearing and Settlement systems, below the bourse's ROE while representing 13% of revenues.
The analysts envisages little upside from higher trading volumes and considers the premium valuation as unwarranted.
Sell rating. Target price $60.
This report was published on May 15, 2024.
Target price is $60.00 Current Price is $62.92 Difference: minus $2.92 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $62.68, suggesting downside of -0.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 207.00 cents and EPS of 244.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.79.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 245.0, implying annual growth of 49.5%.
Current consensus DPS estimate is 208.0, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.6.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 218.00 cents and EPS of 257.00 cents.
At the last closing share price the estimated dividend yield is 3.46%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 254.7, implying annual growth of 4.0%.
Current consensus DPS estimate is 216.1, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 24.6.
Market Sentiment: -0.3
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: $121.77
Jarden rates ((CBA)) as Underweight (4) -
CommBank's 3Q update was slightly better-than-expected, highlighting to Jarden stabilising net interest margins (NIMs) and better-than-expected credit conditions.
The cash profit beat forecasts by consensus and the broker by 3% and 2.4%, respectively, driven largely by lower bad and doubtful debts and a modestly better NIM.
Management signaled "improved momentum" around mortgage competition. No 3Q NIM was disclosed but Jarden suggests it likely fell by -0.5bps quarter-on-quarter to around 1.96%.
The Underweight rating and $102 target are retained.
This report was published on May 10, 2024.
Target price is $102.00 Current Price is $121.77 Difference: minus $19.77 (current price is over target).
If CBA meets the Jarden target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $93.15, suggesting downside of -23.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 455.00 cents and EPS of 581.00 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.96.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 20.8.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 456.00 cents and EPS of 575.30 cents.
At the last closing share price the estimated dividend yield is 3.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.17.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 21.2.
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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