Daily Market Reports | 10:32 AM
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)
ABB ASX AZL BSL BVS CAR CIA COE EOS HUB OBM PTM RED RHC RNU RRL SMP STX WGX
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $3.11
Wilsons rates ((ABB)) as Downgrade to Market Weight from Overweight (3) -
Aussie Broadband upgraded FY24 earnings (EBITDA) to the top end of its range but downgraded FY25 guidance. Wilson's suspects an underestimation of Origin's contribution.
The company also announced the launch of its Buddy brand, the company's digital first brand. The upgrade and downgrade are reflected in EPS-forecast changes.
Rating is downgraded to Market Weight from Overweight. Target price slumps to $3.32 from $4.52.
This report was published on July 16, 2024.
Target price is $3.32 Current Price is $3.11 Difference: $0.21
If ABB meets the Wilsons target it will return approximately 7% (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 15.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.94.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 13.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.38.
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: $64.75
Goldman Sachs rates ((ASX)) as Sell (5) -
Heading into ASX's August results, Goldman Sachs raises its target price to $59 from $55.45 in June. Sell rating retained.
The broker expects fairly steady listings, strong derivatives income (thanks to rate volatility) and improved cash-market trading.
Goldman Sachs also expects collateral balances to have improved in the June half but corporate bonds to drag. Listing fees generally rose about 5% and the broker expects further increases in the December half.
EPS forecasts rise for FY24 and FY25.
This report was published on July 14, 2024.
Target price is $59.00 Current Price is $64.75 Difference: minus $5.75 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $58.76, suggesting downside of -9.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 211.00 cents and EPS of 249.00 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 246.6, implying annual growth of 50.4%.
Current consensus DPS estimate is 209.7, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 26.3.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 217.00 cents and EPS of 255.00 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 25.39.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 251.1, implying annual growth of 1.8%.
Current consensus DPS estimate is 212.9, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.8.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZL ARIZONA LITHIUM LIMITED
New Battery Elements - Overnight Price: $0.02
Petra Capital rates ((AZL)) as Buy (1) -
Having received formal approval to expand drilling at its Big Sandy Lithium Project, Arizona Lithium plans to start drilling at the end of July.
Petra Capital says the speed of the approval negotiated by Arizona Lithium's new partner Big Sandy suggests the latter has the ways and means to navigate Federal and local approval processes.
The project to watch, says Petra Capital, is Prairie Lithium in Saskatchewan.
Buy rating retained. Target price eases to 5c from 6c to reflect the assumed dilution from Big Sandy's equity stake.
This report was published on July 12, 2024.
Target price is $0.05 Current Price is $0.02 Difference: $0.03
If AZL meets the Petra Capital target it will return approximately 150% (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.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.00.
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: $21.40
Jarden rates ((BSL)) as Overweight (2) -
Jarden suspects recent weakness in US benchmark steel spreads could prove the dark before the dawn, observing some forward indicators are starting to improve.
Should spreads remain low throughout the December half, the broker expects BlueScope Steel's earnings could fall -10% to -15% on consensus forecasts, and believes this has already been factored into the share price.
Add the valuation support from the company's $18.24 net tangible assets should prove a floor. Combine this with surplus land assets, and the broker is not too concerned. Dividend forecasts are steady.
FY24 EPS forecasts inch up but FY25 forecasts fall a decent clip. Overweight rating retained. Target price inches up to $24 from $23.90.
This report was published on July 15, 2024.
Target price is $24.00 Current Price is $21.40 Difference: $2.6
If BSL meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $22.26, suggesting upside of 4.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 50.00 cents and EPS of 207.00 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.34.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 206.3, implying annual growth of -5.1%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 10.4.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 50.00 cents and EPS of 162.40 cents.
At the last closing share price the estimated dividend yield is 2.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 181.6, implying annual growth of -12.0%.
Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 11.8.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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