Daily Market Reports | May 27 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)
ALQ ARX CIP DDR DUR GTK IPX MHJ NDO (3) NHC OFX (2) PBH PLT RHC RIC TLS TLX TNE (2) TPG
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $14.02
Goldman Sachs rates ((ALQ)) as Buy (1) -
Following a review of in-line FY24 results by ALS Ltd, Goldman Sachs, suggests minerals margins are exhibiting resilience through the cycle, and the cycle may be turning.
Within the Life Sciences division, Environmental was steady, while recoveries for Food and Pharma are yet to play out, observe the analysts
Goldman Sachs raises its FY25-27 earnings (EBIT) forecasts by 5%, 7% and 8%, respectively, to partly reflect improvements in the
Pharmaceutical and Food businesses and stronger conviction around Mineral’s margin resilience.
Buy. Target rises by $2.00 to $15.60.
This report was published on May 22, 2024.
Target price is $15.60 Current Price is $14.02 Difference: $1.58
If ALQ meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $13.46, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 41.00 cents and EPS of 69.00 cents.
At the last closing share price the estimated dividend yield is 2.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.32.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 66.4, implying annual growth of 2386.9%.
Current consensus DPS estimate is 39.6, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 21.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 45.00 cents and EPS of 75.00 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 73.6, implying annual growth of 10.8%.
Current consensus DPS estimate is 44.1, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 19.0.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARX AROA BIOSURGERY LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.49
Wilsons rates ((ARX)) as Overweight (1) -
Aroa Biosurgery reported in-line FY24 results, with Wilsons not anticipating much for this earnings report. Management offered guidance which also met expectations, with potential upside from conservative forex assumptions.
The analyst remains upbeat on the clinical readouts for MYRIAD and SYMPHONY this year.
Wilsons highlights the importance of demonstrating profitability and commercialising new products to drive fundamental valuation.
Overweight rating and $1 target unchanged.
This report was published on May 22, 2024.
Target price is $1.00 Current Price is $0.49 Difference: $0.51
If ARX meets the Wilsons target it will return approximately 104% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 264.86.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.76 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.90.
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
CIP CENTURIA INDUSTRIAL REIT
REITs - Overnight Price: $3.18
Moelis rates ((CIP)) as Buy (1) -
Moelis analysts maintain their Buy rating for Centuria Industrial REIT with an unchanged price target of $3.71 as the REIT's Q3 update revealed positive momentum, with leasing spreads up 50% year-to-date and portfolio occupancy stable at 97.2%.
Centuria Industrial REIT leased approximately 45,739sqm across eight transactions during the period, reflecting strong demand, the broker suggests.
The acquisition of a small asset for -$11.5m and the divestment of another for $21.6m were in line with book value. FY24 FFO and DPU guidances remain reaffirmed.
This report was published on May 22, 2024.
Target price is $3.71 Current Price is $3.18 Difference: $0.53
If CIP meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.47, suggesting upside of 9.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 16.00 cents and EPS of 17.20 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.1, implying annual growth of N/A.
Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 18.6.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 16.20 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 5.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.5, implying annual growth of 2.3%.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 18.2.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DDR DICKER DATA LIMITED
Hardware & Equipment - Overnight Price: $9.10
Jarden rates ((DDR)) as Overweight (2) -
Jarden analysts upgrade Dicker Data to Buy from Overweight, reducing the price target to $11.38 from $12.61.
Despite the company releasing a tough 1H market update, the analysts note Dicker Data's market position has strengthened, increasing its reseller network by 21% y/y and adding vendors like Adobe and NetApp.
The company reported a 1Q24 gross revenue decline of -9.6% y/y but achieved an EBITDA margin of 4.8%, the highest in eight quarters.
The FY24 net profit forecast has been lowered by -9%, with FY25 and FY26 also seeing reductions of -10% and -11%, respectively. Earnings and margin forecasts have been adjusted downward.
This report was published on May 21, 2024.
Target price is $11.38 Current Price is $9.10 Difference: $2.28
If DDR meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $10.45, suggesting upside of 14.8%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 47.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.32.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 46.0, implying annual growth of 0.9%.
Current consensus DPS estimate is 44.8, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 19.8.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 52.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.23.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 51.7, implying annual growth of 12.4%.
Current consensus DPS estimate is 48.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 17.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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