Daily Market Reports | Jul 25 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)
AX1 BHP COE CXO DMP EOS GMD LOT LYC NWH SEK SHM TLX
AX1 ACCENT GROUP LIMITED
Apparel & Footwear - Overnight Price: $2.19
Petra Capital rates ((AX1)) as Hold (3) -
Petra Capital was positively surprised by Accent Group's trading update. The guided range for FY24 EBIT between $123.2m to $125.2m compares with the broker's estimate of $121m.
The statutory result will be impacted by a one-off charge of -$14.2m related to the closure of Glue stores. Management is closing 17 underperforming Glue Stores, which will result in the banner comprising 18 stores. including its digital store, which, the broker highlights, is expected to be profitable in FY25.
Forecasts have been upgraded. The price target lifts to $2.35 from $2.10 in March and the rating remains Buy.
This report was published on July 18, 2024.
Target price is $2.35 Current Price is $2.19 Difference: $0.16
If AX1 meets the Petra Capital target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.40, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 12.30 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 5.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.9, implying annual growth of -32.5%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 20.1.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 13.00 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.9, implying annual growth of 36.7%.
Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 14.7.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BHP BHP GROUP LIMITED
Bulks - Overnight Price: $41.56
Goldman Sachs rates ((BHP)) as Buy (1) -
Goldman Sachs believes the Big Australian ended the financial year on a strong note for all key divisions. Copper production was the strongest output result in 15 years.
Reaslised prices outperformed the broker's expectations. Unit costs will come out at the upper end of guidance, the broker suspects.
Buy rating remains in place as the valuation is still seen as attractive, even if it remains at a relative premium vis a vis Rio Tinto ((RIO)).
Goldman Sachs remains bullish on copper. Target $48.40. Estimates for FY25 have fallen slightly.
This report was published on July 17, 2024.
Target price is $48.40 Current Price is $41.56 Difference: $6.84
If BHP meets the Goldman Sachs target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $45.67, suggesting upside of 10.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 216.60 cents and EPS of 393.53 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 403.1, implying annual growth of N/A.
Current consensus DPS estimate is 209.0, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 10.2.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 187.61 cents and EPS of 341.67 cents.
At the last closing share price the estimated dividend yield is 4.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 421.1, implying annual growth of 4.5%.
Current consensus DPS estimate is 230.0, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 9.8.
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
COE COOPER ENERGY LIMITED
Crude Oil - Overnight Price: $0.22
Canaccord Genuity rates ((COE)) as Buy (1) -
Cooper Energy's June-quarter result met consensus' and Canaccord Genuity's forecasts but disappointed management's expectation for improved flow rates from Sole, due to an upstream pipeline restriction, observes the broker.
The broker said management had been hoping to use Sole as an indicator of Orbost's value.
BMG abandonment was completed and is no longer a drag on earnings.
The broker points to an AEMO warning that the seasonal shortages could hit Australia's south east from 2028.
Buy rating and 27c target price retained.
This report was published on July 17, 2024.
Target price is $0.27 Current Price is $0.22 Difference: $0.05
If COE meets the Canaccord Genuity target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $0.26, suggesting upside of 18.2%(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 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.3, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 73.3.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 220.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.3, implying annual growth of 333.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 16.9.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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