Daily Market Reports | Jul 09 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)
ACF APE BHP BSL CAI CCR CIA CRN CTM DRR FMG ILU LIN LTR (2) LYC MAH MIN MYE MYX NHC OBM QAN RED RIO RUL S32 SFR SGM (2) SHA SLC SUN WHC
ACF ACROW LIMITED
Building Products & Services - Overnight Price: $1.06
Petra Capital rates ((ACF)) as Buy (1) -
The latest trading update for Acrow suggests to Petra Capital operating momentum has remained positive. Management noted record hire contract wins ($12.3m) in June, boosting contracted hire revenue to $78.3m, up by 17% on the previous corresponding period.
The broker believes the upcoming FY24 result will meet management's guidance and anticipates further strong growth in FY25.
Petra Capital points to buoyant demand across key end markets and ongoing opportunities for Acrow to expand its operating footprint.
The Buy rating and $1.47 target are maintained.
This report was published on July 3, 2024.
Target price is $1.47 Current Price is $1.06 Difference: $0.405
If ACF meets the Petra Capital target it will return approximately 38% (excluding dividends, fees and charges).
Current consensus price target is $1.34, suggesting upside of 25.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 6.00 cents and EPS of 11.50 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.26.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.8, implying annual growth of 31.7%.
Current consensus DPS estimate is 5.5, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 9.1.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 7.00 cents and EPS of 13.40 cents.
At the last closing share price the estimated dividend yield is 6.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.95.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.1, implying annual growth of 11.0%.
Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 8.2.
Market Sentiment: 0.8
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: $10.16
Canaccord Genuity rates ((APE)) as Buy (1) -
Canaccord Genuity observes June 2024 vehicle sales data showed a -4.2% decline year-on-year but a 7.7% sequential monthly increase, reflecting strong market conditions.
Year-to-date sales increased by 8.7%, although the broker notes some softening in margins across some brands and models which are over-supplied; a record 2024 is still forecast by the analyst.
The broker has maintained its Buy rating with an $11.70 target price for Eagers Automotive as it believes the company has more robust margins and a technological advantage over its peers.
This report was published on July 2, 2024.
Target price is $11.70 Current Price is $10.16 Difference: $1.54
If APE meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $12.28, suggesting upside of 20.9%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 60.00 cents and EPS of 96.80 cents.
At the last closing share price the estimated dividend yield is 5.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.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 6.6%.
Current consensus EPS estimate suggests the PER is 10.5.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 57.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 5.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.66.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
BHP BHP GROUP LIMITED
Bulks - Overnight Price: $43.48
Goldman Sachs rates ((BHP)) as Buy (1) -
For the second half of 2024 commodities outlook, Goldman Sachs remains most positive on copper, aluminium, and metallurgical coal on forecast market deficits.
On the other hand, the broker remains bearish thermal coal and battery materials (lithium, nickel) on forecast market surpluses. Elsewhere, the benchmark 62% iron ore price is expected to average between US$100-105/t over the remainder of the year.
The broker's target for BHP Group falls to $48.40 from $49 on lower forecasts for iron ore production and reduced met coal production estimates for FY25 and FY26. Buy.
This report was published on July 3, 2024.
Target price is $48.40 Current Price is $43.48 Difference: $4.92
If BHP meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $46.08, suggesting upside of 5.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 216.50 cents and EPS of 393.35 cents.
At the last closing share price the estimated dividend yield is 4.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 393.5, implying annual growth of N/A.
Current consensus DPS estimate is 223.6, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 11.1.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 192.10 cents and EPS of 343.04 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 423.7, implying annual growth of 7.7%.
Current consensus DPS estimate is 241.8, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 10.3.
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
BSL BLUESCOPE STEEL LIMITED
Steel & Scrap - Overnight Price: $19.78
Goldman Sachs rates ((BSL)) as Buy (1) -
For the second half of 2024 commodities outlook, Goldman Sachs remains most positive on copper, aluminium, and metallurgical coal on forecast market deficits.
On the other hand, the broker remains bearish thermal coal and battery materials (lithium, nickel) on forecast market surpluses. Elsewhere, the benchmark 62% iron ore price is expected to average between US$100-105/t over the remainder of the year.
The broker's target for BlueScope Steel falls to $28.20 from $30.10 largely due to lower FY25 Asia and US steel spread assumptions. Buy.
This report was published on July 3, 2024.
Target price is $28.20 Current Price is $19.78 Difference: $8.42
If BSL meets the Goldman Sachs target it will return approximately 43% (excluding dividends, fees and charges).
Current consensus price target is $22.42, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 202.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.79.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 205.4, implying annual growth of -5.5%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 9.8.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 179.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 190.3, implying annual growth of -7.4%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 10.5.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAI CALIDUS RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.12
Canaccord Genuity rates ((CAI)) as No Rating (-1) -
While Calidus Resources has recently worked with Macquarie to restructure its hedging and debt to more favourable terms, Canaccord Genuity notes the company has now been placed into voluntary administration.
After undertaking an urgent assessment of the company's operations, the receivers and managers will begin a dual-track re-capitalisation and sale process for Calidus, explains the broker.
The broker's price target and rating for Calidus Resources are withdrawn.
This report was published on July 2, 2024.
Current Price is $0.12. Target price not assessed.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CCR CREDIT CLEAR LIMITED
Diversified Financials - Overnight Price: $0.24
Petra Capital rates ((CCR)) as Buy (1) -
Recent data are showing an acceleration in companies entering insolvency for the first time, with numbers now exceeding pre-covid levels, highlights Petra Capital. March through to May has seen a collective 47% increase over the previous corresponding period.
Credit Clear is set to meet the broker's earnings expectations for FY25, with management having recently slightly raised FY24 guidance.
Buy rating retained. The target rises to 51c from 43c on a roll-forward of the broker's revenue forecasts.
This report was published on July 1, 2024.
Target price is $0.51 Current Price is $0.24 Difference: $0.265
If CCR meets the Petra Capital target it will return approximately 108% (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 17.50.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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