Daily Market Reports | 12:53 PM
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.
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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)
29M AGY ATA CVN EVN GNE LNW NWC NWL PRN PSC SDV SFR TLX WES
29M 29METALS LIMITED
Copper - Overnight Price: $0.38
Canaccord Genuity rates ((29M)) as Downgrade to Sell from Hold (5) -
29Metals' June-quarter result disappointed Canaccord Genuity despite an operational improvement at Golden Grove and a decent production beat on all metals save zinc and a consensus beat on costs (albeit a miss for the broker).
The big problem in the broker's view was a failure to capitalise on strong base metals pricing with cash flow missing both consensus and Canaccord Genuity's forecasts and a net draw-down of -US$10m in debt.
The company closed the quarter with net debt of $146m, up from $106m, and advised of a $27m stamp duty liability. While the company has sufficient liquidity, the broker observes the balance sheet is more precarious.
The broker forecasts challenging operating conditions due to a lack of consistency at Golden Grove on key financial metrics.
Rating is downgraded to Sell from Hold. Target price slumps to 34c from 44c.
This report was published on July 24, 2024.
Target price is $0.34 Current Price is $0.38 Difference: minus $0.04 (current price is over target).
If 29M meets the Canaccord Genuity target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.55, suggesting upside of 39.7%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -8.8, 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 N/A.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.8, 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 13.9.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AGY ARGOSY MINERALS LIMITED
New Battery Elements - Overnight Price: $0.05
Petra Capital rates ((AGY)) as Downgrade to Hold from Buy (3) -
Argosy Minerals has suspended production at its Rincon lithium carbonate production facility in Argentina due to an inability to meet its nameplate production rates, observes Petra Capital.
The broker observes mechanical issues at the filtering stage have proven the project to be uneconomic given the small production base.
Management now turns its focus to cash conservation and developing its larger plants with better economies of scale.
FY24 EPS forecasts fall. FY25 EPS forecasts rise. Rating is downgraded to Hold from Buy. Target price slumps to 5c from 31c.
This report was published on July 25, 2024.
Target price is $0.05 Current Price is $0.05 Difference: $0.002
If AGY meets the Petra Capital target it will return approximately 4% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.69.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 24.00.
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ATA ATTURRA LIMITED
Software & Services - Overnight Price: $0.81
Moelis rates ((ATA)) as Initiation of coverage with Buy (1) -
Moelis initiates coverage on IT Services provider Attura, which services the defence, government, utilities, education, financial services and manufacturing sectors.
The broker estimates the company can achieve a roughly 13% EPS compound annual growth rate between FY24 and FY27 due to: increased share of existing client base's budgets; a growing service offering and new capabilities; and inorganic growth opportunities (it has a strategy of 50:50 organic and inorganic growth).
Buy rating and $1.25 target price.
This report was published on July 25, 2024.
Target price is $1.25 Current Price is $0.81 Difference: $0.44
If ATA meets the Moelis target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 5.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.58.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.46.
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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