Daily Market Reports | Jun 17 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
3PL ADH AKG APE BMN BPT CKF CSL CSR CVW CXM DGH DSK KMD LOV LRK QBE RKN WDS
3PL 3P LEARNING LIMITED
Education & Tuition - Overnight Price: $1.24
Taylor Collison rates ((3PL)) as Speculative Buy (1) -
3P Learning's strategy to accelerate growth in the US market, particularly through re-acquiring the school distribution rights to Reading-Eggs, appears to be on track, notes Taylor Collison.
Third-party web traffic and app download data show a significant increase in Reading-Eggs usage, with web traffic up by 36% year-on-year, and by 50% from February to May 31, explains the broker.
On the flipside, the broker notes a -37% reduction in web traffic in February and March for Mathletics, and a -12% decrease in app downloads from December to May, which could impact 3P Learning's annual recurring revenue (ARR).
The analyst's overall revenue growth estimate has been reduced to 5.8% from 10%.
The Speculative Buy rating is maintained as the consumer environment may improve with Australian wages outgrowing inflation, potentially benefiting B2C growth, explains the broker. No target price is mentioned.
This report was published on June 14, 2024.
Target price is $1.64 Current Price is $1.24 Difference: $0.405
If 3PL meets the Taylor Collison target it will return approximately 33% (excluding dividends, fees and charges).
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 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.67.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.22.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $1.81
Canaccord Genuity rates ((ADH)) as Hold (3) -
Improved trading in the Consumer Discretionary sector because of tax cuts and the cycling of weaker comparatives could continue until the 1H of FY25, but this view is already held by consensus, suggests Canaccord Genuity.
The broker retains a Neutral sector view ahead of the August reporting season. Scope for a lift in consumer sentiment, aided by improving real household income, is thought to be the key ingredient for a more sustained sector rally.
The analyst retains a Hold rating for Adairs and lowers the target price to $1.92 from $2.14 due to a lower assumed multiple.
This report was published on June 12, 2024.
Target price is $1.92 Current Price is $1.81 Difference: $0.11
If ADH meets the Canaccord Genuity target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $2.20, suggesting upside of 23.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 10.50 cents and EPS of 18.90 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.58.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.1, implying annual growth of -13.1%.
Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 9.3.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 14.50 cents and EPS of 23.80 cents.
At the last closing share price the estimated dividend yield is 8.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.61.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.3, implying annual growth of 22.0%.
Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 8.4%.
Current consensus EPS estimate suggests the PER is 7.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AKG ACADEMIES AUSTRALASIA GROUP LIMITED
Education & Tuition - Overnight Price: $0.18
Taylor Collison rates ((AKG)) as Speculative Buy (1) -
Taylor Collison maintains a cautiously positive long-term view on Academies Australasia, despite a further decrease in student visa approvals as industry regulation is increased.
The broker likes the company's competitive market position and scale which alleviates the likelihood of the company being affected by proposed legislation.
Beginning in 2025, providers will be required to deliver a course to domestic students for a minimum of two years before they can apply to deliver courses to international students, explains the analyst.
The Speculative Buy rating is unchanged. No target price is mentioned.
This report was published on June 14, 2024.
Current Price is $0.18. 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 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.57.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.50.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $10.18
Wilsons rates ((APE)) as Market Weight (3) -
Eagers Automotive's investor day highlighted strategic growth initiatives including the Automall property strategy, enhanced productivity through people and technology, and increased finance and insurance (F&I) penetration, explains Wilsons.
Potential upside from these initiatives is countered by the ongoing uncertainty on near-term profitability associated with the correction in vehicle supply and demand, explains the broker.
The Market Weight rating and $10.47 target are maintained.
This report was published on June 12, 2024.
Target price is $10.47 Current Price is $10.18 Difference: $0.29
If APE meets the Wilsons target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $12.28, suggesting upside of 21.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 66.00 cents and EPS of 96.90 cents.
At the last closing share price the estimated dividend yield is 6.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.51.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 96.9, implying annual growth of -12.5%.
Current consensus DPS estimate is 67.5, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 10.4.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 68.90 cents and EPS of 101.70 cents.
At the last closing share price the estimated dividend yield is 6.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 83.0, implying annual growth of -14.3%.
Current consensus DPS estimate is 69.0, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 12.2.
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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