Daily Market Reports | Jun 11 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)
ADA APM ASX BMT CAA CIA (2) CNB CSC CTP DDR DXB EVO IPG KCN LOV (2) LRS MAC NCK NTU NWC (2) PER QAN SFX SGLLV SNL SSM STX TLX (2) TRS WGX XRO
ADA ADACEL TECHNOLOGIES LIMITED
Software & Services - Overnight Price: $0.64
Taylor Collison rates ((ADA)) as Outperform (2) -
Taylor Collison considers the sell-off in Adacel Technologies shares an opportunity, despite the recent financial results being below expectations.
The broker's positive outlook is based on recently-signed five-year contracts with quality government or quasi-government entities, noting these have been previously performed by the company and therefore the margins can be reliably estimated.
The remote tower business is currently causing a drag on profits but this is expected to be rectified in the next 12 months. The broker believes the stock is significantly undervalued and retains an Outperform rating. No target is provided.
This report was published on May 22, 2024.
Current Price is $0.64. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 3.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 16.80.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 5.20 cents and EPS of 5.20 cents.
At the last closing share price the estimated dividend yield is 8.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.31.
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
APM APM HUMAN SERVICES INTERNATIONAL LIMITED
Healthcare - Overnight Price: $1.39
Canaccord Genuity rates ((APM)) as Hold (3) -
APM Human Services International has entered into a scheme implementation deed for the acquisition by Ancora, an entity controlled by Madison Dearborn Partners. The cash offer has been increased to $1.45 from $1.40.
The company has updated on guidance, expecting underlying EBITDA for FY24 to be around the lower end of the range provided in April, being $280-290m.
Canaccord Genuity expects the deal will proceed, given management support and the current 29% ownership position of Madison Dearborn. Hold maintained. Target rises to $1.45 from $1.30.
This report was published on June 3, 2024.
Target price is $1.45 Current Price is $1.39 Difference: $0.065
If APM meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $1.43, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 5.15 cents and EPS of 10.40 cents.
At the last closing share price the estimated dividend yield is 3.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.32.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.3, implying annual growth of -20.6%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.9.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 6.87 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.96.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.2, implying annual growth of 9.7%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 13.6.
Market Sentiment: 0.2
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: $64.32
Jarden rates ((ASX)) as Neutral (3) -
Jarden says preliminary futures data suggest momentum from the strong April month continued into May. The broker forecasts an increase in daily average volume growth of 26% (about 12% above consensus forecasts) for the month.
Preliminary cash markets data suggest equity turnover rose 3% in May. The broker is awaiting FY25 cost growth guidance before taking too much heart from the revenue increase.
Neutral rating retained. Target price edges up to $63.70 from $63.60.
This report was published on June 3, 2024.
Target price is $63.70 Current Price is $64.32 Difference: minus $0.62 (current price is over target).
If ASX meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $62.68, suggesting downside of -1.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 211.50 cents and EPS of 248.80 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 25.85.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 26.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 226.50 cents and EPS of 266.40 cents.
At the last closing share price the estimated dividend yield is 3.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.14.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 25.0.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BMT BEAMTREE HOLDINGS LIMITED
Healthcare services - Overnight Price: $0.22
Petra Capital rates ((BMT)) as Buy (1) -
Beamtree Holdings continues to break ground in Saudi Arabia with a significant contract win worth $3.6m that represents around 16% of the previous year's revenue.
Petra Capital considers this a strong gain for the business as it builds upon the investment that has been made in that country to date. It is also in the private sector, in contrast with its traditional "hunting ground" in the public sector.
The broker forecasts 27% revenue growth for FY25 and retains a Buy rating and 61 cents target.
This report was published on May 30, 2024.
Target price is $0.61 Current Price is $0.22 Difference: $0.39
If BMT meets the Petra Capital target it will return approximately 177% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 15.71.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 73.33.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAA CAPRAL LIMITED
Aluminium, Bauxite & Alumina - Overnight Price: $9.15
Taylor Collison rates ((CAA)) as Outperform (2) -
Taylor Collison considers it prudent to highlight deteriorating macro conditions, particularly in the residential housing sector, although Capral has strengthened its geographical position with recent board appointments.
The broker remains upbeat on the underlying fundamentals of the business which reinforce the medium-longer term investment thesis and FY24 forecasts are unchanged.
Sector consolidation continues with the acquisition of Aluminium Trade Centre, a distribution centre that generates $10m in revenue from Victoria.
The Outperform rating is retained with no target price provided.
This report was published on May 24, 2024.
Current Price is $9.15. Target price not assessed.
The company's fiscal year ends in December.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of 146.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.25.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 141.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.48.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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