Daily Market Reports | 4:35 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.
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)
29M AGY ALK APX ARF ARU ARX (2) BCB BSL CRN CXL CXO DHG DLI DSE FLT (2) FMG GL1 GLN GT1 IGO ILU IMM INR LGP LKE LLL LNW LRS MAC MP1 MQG NEC NST NWS NXT OBM (2) OFX OML PLS (2) PLT PME PNR PNV PPT PRN PXA PYC QOR REA RMD RRL SDR SGF SGLLV SMP SMR SOM SPK SWM SYA (2) TLS TPG VUL WC8 WDS (2) WR1
29M 29METALS LIMITED
Copper - Overnight Price: $0.40
Jarden rates ((29M)) as Underweight (4) -
Jarden continues to harbour concerns over the cash burn for 29Metals and the impact of lower spot price on liquidity for the company.
At June 30 cash on hand declined to $85 from $106m at the previous quarter, and net debt increased to $136m from $103m at the end of the March quarter, the broker highlights, and continues to forecast 29Metals will require a $60m "liquidity event" to remain solvent.
An Underweight rating is retained with a 33c target, up from 28c, due to higher long-term copper price forecasts.
This report was published on July 25, 2024.
Target price is $0.33 Current Price is $0.40 Difference: minus $0.07 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.55, suggesting upside of 29.8%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 9.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.26.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:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.81.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 15.0.
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: $0.04
Canaccord Genuity rates ((AGY)) as Speculative Buy (1) -
Canaccord Genuity adjusts ratings and targets for the lithium exposed companies due to the continued oversupply conditions and the weaker growth in demand.
The broker has "flat lined" its price forecast until 2026 and sees the SC6 pricing in a range between US$1000-US$1500t until 2027.
A Speculative Buy rating on Argosy Minerals is retained and the target lowered to 10c from 27c.
This report was published on July 25, 2024.
Target price is $0.10 Current Price is $0.04 Difference: $0.061
If AGY meets the Canaccord Genuity target it will return approximately 156% (excluding dividends, fees and charges).
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALK ALKANE RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.43
Petra Capital rates ((ALK)) as Buy (1) -
Alkane Resources posted a strong performance in the last quarter of FY24, Petra Capital notes, with maiden production from Roswell underground driving a 43% quarter on quarter increase in head grade and lifting June Q production.
Full year ore feed from Roswell will support a production uplift in FY25, with recovery gains from process plant upgrades and from a mill
throughput expansion driving additional production increases.
Petra forecasts this profile, allied to a moderating capital program, will see Alkane generating strong quarterly free cash flows from the Sept quarter 2025.
Target falls to 97c from $1.00, Buy retained.
This report was published on July 26, 2024.
Target price is $0.97 Current Price is $0.43 Difference: $0.535
If ALK meets the Petra Capital target it will return approximately 123% (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 3.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.15.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.06.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APX APPEN LIMITED
IT & Support - Overnight Price: $0.75
Canaccord Genuity rates ((APX)) as Upgrade to Speculative Buy from Hold (3) -
Canaccord Genuity raises its target for Appen to 80c from 60c and upgrades to Speculative Buy from Hold as revenues recovered strongly towards the end of the June quarter. Quartely revenue was US$55m compared to the broker's US$49m forecast.
Offering light at the end of the tunnel, according to the broker, revenues rose to US$21.1m from $US15.9m in June, all following the loss of Google which exited as a customer in March. Closing cash at June 30 was US$34.7m, a rise of US$2m over the first half.
While this June revenue number run-rates to circa US$130m for the 2H, the analysts conservatively forecast US$117m.
Canaccord highlights the cash cost base continues to fall, with opex around -US$60m lower on an annualised basis in Q2 than the 1Q of FY23.
This report was published on July 31, 2024.
Target price is $0.80 Current Price is $0.75 Difference: $0.05
If APX meets the Canaccord Genuity target it will return approximately 7% (excluding dividends, fees and charges).
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 7.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.62.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.06.
Market Sentiment: -1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARF ARENA REIT
REITs - Overnight Price: $3.86
Jarden rates ((ARF)) as Overweight (2) -
Jarden is positive on the recent $58m portfolio acquisition, the four new development sites and the capital raise for Arena REIT, which are all expected to assist in generating growth.
The analyst forecasts the REIT can generate between 5%-6% compound annual growth in funds from operations over the next three years.
Arena REIT pre-released its FY24 results which were in line with the broker's estimate and the FY25 dividend guidance of 18.25c exceeded previous forecasts.
Overweight rating and $4.30 target remain.
This report was published on July 23, 2024.
Target price is $4.30 Current Price is $3.86 Difference: $0.44
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 1.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 17.40 cents and EPS of 17.60 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 21.93.How do these forecasts compare to market consensus projections?
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 22.5.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 18.20 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 4.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.0, implying annual growth of 2.9%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 21.8.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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