Daily Market Reports | May 29 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)
APE ARX AUB (2) CGF FPH IFT LRS MDR NAB NXD RRL S32 VIT VUL WBC WC8 WEB (2) XRO
WC8 WILDCAT RESOURCES LIMITED
New Battery Elements - Overnight Price: $0.48
Canaccord Genuity rates ((WC8)) as Speculative Buy (1) -
Canaccord Genuity highlights the positive assay results from Wildcat Resources' Tabba Tabba Lithium Project, which indicate an extension of the Luke discovery to over 800m in strike length.
The analysts are optimistic about the shallow nature of the Luke pegmatite, which they believe bodes well for future open-pit mining. The company is expecting a maiden resource for Tabba Tabba in 2H 2024.
Canaccord Genuity sticks with its Speculative Buy rating, price target unchanged at $1.00.
This report was published on May 23, 2024.
Target price is $1.00 Current Price is $0.48 Difference: $0.52
If WC8 meets the Canaccord Genuity target it will return approximately 108% (excluding dividends, fees and charges).
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WEB WEBJET LIMITED
Travel, Leisure & Tourism - Overnight Price: $8.65
Goldman Sachs rates ((WEB)) as No Rating (-1) -
Webjet's FY24 revenue and EBITDA and came in 1% better and -1% below the Goldman Sachs forecasts, respectively.
Underlying net profit at $128.4m was -1% below the broker's estimates and in line with market consensus, the broker comments.
The broker lifts FY25/26 revenue estimates by 2-3% due to strong performance in WebBeds TTV, up 35% year-to-date, partly offset by lower Webjet OTA revenue.
Accordingly, net profit estimates are adjusted between -1% for FY26 and 2% for FY26.
No rating. No price target.
This report was published on May 22, 2024.
Current Price is $8.65. Target price not assessed.
Current consensus price target is $10.27, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 39.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 41.3, implying annual growth of 118.8%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 20.9.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 EPS of 47.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.1, implying annual growth of 18.9%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 17.6.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((WEB)) as Buy (1) -
Jarden assesses the FY24 Webjet result as strong. Underlying EBITDA grew 40% year-on-year, in line with guidance and consensus forecasts.
The broker highlights the WebBeds business outperformed, with TTV up 35% year-to-date against FY25 guidance of 25% growth.
Management also announced plans to demerge its B2B (WebBeds) from B2C (OTA) businesses to drive valuation benefits and allow each business to focus on specific growth strategies.
The analyst adjusts net profit estimates for FY25 by -1% for the proposed demerger, and by -0.4% for FY26.
Buy rating remains with an upgraded target of $10.30, up from $9.55.
This report was published on May 22, 2024.
Target price is $10.30 Current Price is $8.65 Difference: $1.65
If WEB meets the Jarden target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $10.27, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 37.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 41.3, implying annual growth of 118.8%.
Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 0.9%.
Current consensus EPS estimate suggests the PER is 20.9.
Forecast for FY26:
Jarden forecasts a full year FY26 EPS of 47.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.13.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 49.1, implying annual growth of 18.9%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 17.6.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
XRO XERO LIMITED
Accountancy - Overnight Price: $133.54
Goldman Sachs rates ((XRO)) as Buy (1) -
Goldman Sachs has identified strong revenue growth, cost controls and much-lower-than-expected capex as highlights from Xero's FY24 result.
More negatively, the opex/sales ratio is expected to increase to 73% in FY25 from 68% in 2H of FY24 due to accelerated product investment, explain the analysts.
Buy rating retained. The broker's target rises to $164 from $156 to to reflect a stronger revenue outlook (up by 4% across FY25-26) partly offset by higher costs.
This report was published on May 24, 2024.
Target price is $164.00 Current Price is $133.54 Difference: $30.46
If XRO meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $138.58, suggesting upside of 3.8%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 158.03 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.51.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 121.1, 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 110.3.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 206.08 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 64.80.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 127.5, implying annual growth of 5.3%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 0.1%.
Current consensus EPS estimate suggests the PER is 104.7.
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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