Daily Market Reports | Jun 13 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)
AQZ ASX BCB BHP BMN (2) BRE (2) BSL BWP CCP CLG DRE EMR IEL (2) LGL LIN LOV LRK MIN (2) MMC OBM PMT SDR SKC STN TPW TWE (2) VVA
AQZ ALLIANCE AVIATION SERVICES LIMITED
Transportation & Logistics - Overnight Price: $3.02
Wilsons rates ((AQZ)) as Overweight (1) -
Alliance Aviation's recent guidance outpaced consensus and the company announced engine sales yielding a $25m gross profit.
Wilsons says the former points to sustained earnings growth from fleet expansion and the latter to strong earnings contribution from the Aviation Services division.
The broker considers risk to be to the upside.
Overweight rating unchanged. Target price edges up to $4.49 from $4.47.
This report was published on June 7, 2024.
Target price is $4.49 Current Price is $3.02 Difference: $1.47
If AQZ meets the Wilsons target it will return approximately 49% (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 36.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.21.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 38.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.78.
Market Sentiment: 1.0
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: $63.20
Jarden rates ((ASX)) as Neutral (3) -
Jarden notes revenue drivers for the ASX are slowly improving after a second consecutive month of double-digit futures volume growth in May as markets pushed back timing of central bank cash rate cuts.
In the first positive growth since March 2023, notes the broker, strong futures volume growth also saw collateral balances rise by 5% on the previous corresponding period.
The analysts' Neutral rating is retained given lingering uncertainty on FY25 cost growth. The $63.70 target is also unchanged.
This report was published on June 7, 2024.
Target price is $63.70 Current Price is $63.20 Difference: $0.5
If ASX meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $62.68, suggesting upside of 8.8%(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 3.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.40.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 3.6%.
Current consensus EPS estimate suggests the PER is 23.5.
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 3.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.72.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 3.8%.
Current consensus EPS estimate suggests the PER is 22.6.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BCB BOWEN COKING COAL LIMITED
Coal - Overnight Price: $0.06
Petra Capital rates ((BCB)) as Buy (1) -
Petra Capital observes Bowen Coking Coal has emerged from a challenging period with a streamlined mining operation of just one low strip-ratio open cut mine.
Management has advised of sharp falls in capital expenditure this year now the refurbishment of Ellensfield is complete.
Petra Capital observes large cash outflows remain as debt repayments kick off in September and capex will kick off for Plumtree at the end of the year, most likely demanding a capital raising or refinance within a year.
Buy rating retained on valuation. Target price falls to 11c from 21c.
This report was published on June 7, 2024.
Target price is $0.11 Current Price is $0.06 Difference: $0.05
If BCB meets the Petra Capital target it will return approximately 83% (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 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 10.00.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1.58.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BHP BHP GROUP LIMITED
Bulks - Overnight Price: $43.50
Goldman Sachs rates ((BHP)) as Buy (1) -
Goldman Sachs reinstates coverage of BHP Group, considering its share to be attractively priced, citing robust free cash flow and growth potential in the copper sector.
BHP is expected to generate significant EBITDA from copper, with forecasts showing an increase to US$11.5bn in FY25. The broker appreciates the company's optionality from its US$20bn copper pipeline but observes its production and valuation lag that of Rio Tinto ((RIO)).
Financial forecasts have been adjusted, with EPS for FY24 revised to US$2.58 and FY25 to US$2.28. The broker remains optimistic about BHP’s ongoing superior margins and operating performance, particularly in the Pilbara iron ore sector.
Buy, alongside a 12-month price target of $49.00.
This report was published on June 12, 2024.
Target price is $49.00 Current Price is $43.50 Difference: $5.5
If BHP meets the Goldman Sachs target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $45.06, suggesting upside of 4.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 216.36 cents and EPS of 393.11 cents.
At the last closing share price the estimated dividend yield is 4.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 349.1, implying annual growth of N/A.
Current consensus DPS estimate is 232.3, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 12.4.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 191.99 cents and EPS of 347.40 cents.
At the last closing share price the estimated dividend yield is 4.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 423.4, implying annual growth of 21.3%.
Current consensus DPS estimate is 253.8, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 10.2.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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