Daily Market Reports | Jun 21 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 ARF BCI BOE BPT BWP CAI CHC CIA CIP CLW CNI COF COI CQE CQR CRD DXS GMG GPT HDN HMC INA LIC LNW MEI MGR NEU NSR RGN SCG SEK SGP SPZ TAH VCX
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $10.54
Moelis rates ((APE)) as Buy (1) -
Eagers Automotive's investor day outlined its long-term structural cost-out and efficiency initiatives aimed at increasing margins by 1.9%, significantly higher than the current 3%, Moelis highlights.
Management aims to optimise its property portfolio, improve efficiency through technology, and pursue multiple topline growth initiatives, despite facing both short-term and long-term industry headwinds.
Moelis has kept FY24-26 EPS estimates unchanged, acknowledging while the automotive cycle turns against Eagers Automotive in the short term, its strategic initiatives make it an attractive investment.
Buy rating and $12.41 target unchanged.
This report was published on June 17, 2024.
Target price is $12.41 Current Price is $10.54 Difference: $1.87
If APE meets the Moelis target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $12.28, suggesting upside of 16.5%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 66.50 cents and EPS of 100.10 cents.
At the last closing share price the estimated dividend yield is 6.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.53.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 6.4%.
Current consensus EPS estimate suggests the PER is 10.9.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 62.70 cents and EPS of 91.80 cents.
At the last closing share price the estimated dividend yield is 5.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.48.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 6.5%.
Current consensus EPS estimate suggests the PER is 12.7.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARF ARENA REIT
REITs - Overnight Price: $3.88
Jarden rates ((ARF)) as Overweight (2) -
Within Jarden's coverage of the Australian REIT sector, weighted-average funds from operations (FFO) growth forecasts are starting to improve for FY25 and FY26 to 3.6% and 7.9%, respectively, from -2.2% in FY24.
The broker believes downside risk to asset values is well reflected in current valuations, and REITs are increasingly moving to offence from defence.
Excluding Goodman Group (which remains the best quality stock in the sector), the analysts see around 18% upside to 12-month target prices.
The Overweight rating for Arena REIT is retained and the target increased to $4.30 from $4.10. Jarden regards this REIT as a structural earnings compounder, driving ongoing outperformance.
This report was published on June 20, 2024.
Target price is $4.30 Current Price is $3.88 Difference: $0.42
If ARF meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $3.99, suggesting upside of 2.8%(ex-dividends)
Forecast for FY24:
Current consensus EPS estimate is 17.5, implying annual growth of -16.0%.
Current consensus DPS estimate is 17.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 22.2.
Forecast for FY25:
Current consensus EPS estimate is 18.2, implying annual growth of 4.0%.
Current consensus DPS estimate is 18.2, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 21.3.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BCI BCI MINERALS LIMITED
Iron Ore - Overnight Price: $0.23
Canaccord Genuity rates ((BCI)) as Speculative Buy (1) -
BCI Minerals reported it has agreed to sell the Iron Valley iron ore assets to Mineral Resources, with the company expected to receive $26m on completion in July 2024 and additional payments totaling $46.6m by July 2025.
Canaccord Genuity notes the Mardie Salt and SOP project is 43% complete, with strong salt and SOP pricing signals expected to support future revenue.
The project still awaits Federal Environmental approval, which, the broker reports, is being watched by the market.
Speculative Buy rating unchanged. The target price is raised to 49c from 47c.
This report was published on June 17, 2024.
Target price is $0.49 Current Price is $0.23 Difference: $0.265
If BCI meets the Canaccord Genuity target it will return approximately 118% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 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 75.00.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 25.00.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BOE BOSS ENERGY LIMITED
Uranium - Overnight Price: $4.15
Canaccord Genuity rates ((BOE)) as Speculative Buy (1) -
Boss Energy is now the only multi-mine producer on the ASX, and one of few globally, following commencement of production at the 30%-owned Alta Mesa mine in Texas.
Canaccord Genuity forecasts a ramp-up to plateau production over a 20-month period.
The Honeymoon operations in South Australia are also ramping-up, notes the analyst, and management advises feasibility study forecasts are being exceeded.
The Speculative Buy rating and $6.00 target are retained.
This report was published on June 14, 2024.
Target price is $6.00 Current Price is $4.15 Difference: $1.85
If BOE meets the Canaccord Genuity target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $5.43, suggesting upside of 30.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 9.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.8, implying annual growth of 175.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 42.3.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 27.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 22.2, implying annual growth of 126.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.7.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BPT BEACH ENERGY LIMITED
Crude Oil - Overnight Price: $1.47
Wilsons rates ((BPT)) as Overweight (1) -
Beach Energy updated FY25 production guidance, lowering market expectations to 17.5-21.5 mmboe compared to the previous consensus of 24 mmboe.
Wilsons highlights management also announced a -$150m cost-out program and the broker forecasts a -$35m reduction in operating expenditure in FY25.
Wilsons adjusts FY25 production by -13% and reduced long-term production rates by around -10%, while maintaining future capex will be higher than consensus expectations.
Overweight rating retained, with the price target lowered $1.76 from $1.89.
This report was published on June 19, 2024.
Target price is $1.76 Current Price is $1.47 Difference: $0.29
If BPT meets the Wilsons target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $1.81, suggesting upside of 23.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 5.00 cents and EPS of 11.30 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.0, implying annual growth of -9.0%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 9.2.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 8.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 5.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 22.7, implying annual growth of 41.9%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 6.5.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BWP BWP TRUST
REITs - Overnight Price: $3.63
Jarden rates ((BWP)) as Underweight (4) -
Within Jarden's coverage of the Australian REIT sector, weighted-average funds from operations (FFO) growth forecasts are starting to improve for FY25 and FY26 to 3.6% and 7.9%, respectively, from -2.2% in FY24.
The broker believes downside risk to asset values is well reflected in current valuations, and REITs are increasingly moving to offence from defence.
Excluding Goodman Group (which remains the best quality stock in the sector), the analysts see around 18% upside to 12-month target prices.
The Underweight rating for BWP Trust is retained and the target increased to $3.55 from $3.30. Jarden expects this REIT's net tangible assets (NTA) metric will come under pressure when assets are properly marked-to-market.
This report was published on June 20, 2024.
Target price is $3.55 Current Price is $3.63 Difference: minus $0.08 (current price is over target).
If BWP meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.65, suggesting upside of 0.6%(ex-dividends)
Forecast for FY24:
Current consensus EPS estimate is 18.1, implying annual growth of 217.0%.
Current consensus DPS estimate is 18.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.1.
Forecast for FY25:
Current consensus EPS estimate is 18.6, implying annual growth of 2.8%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 19.5.
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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