Daily Market Reports | Aug 08 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)
ASB BEN BGL BMT BVS CBA CCX CRD CRN CSC CU6 EXP FCL FPH GLL GOR HVN INA JAN JBH JLG LIC LNW LOT LRK LTM NEU NIC NXT (2) PEN PMT PMV PNI PYC RMD (2) VGL WDS WES
ASB AUSTAL LIMITED
Commercial Services & Supplies - Overnight Price: $2.37
Petra Capital rates ((ASB)) as Buy (1) -
Petra Capital forecasts incremental revenue of $84m and an opportunity to enhance profit margins, after Austal announced a contract modification for the US Navys more LandingCraft Utility (LCU) program.
The number of units on order has increased to five from three. Austal has an option to build a total of 12 LCUs for the US Navy, with the overall value of this contract (including all options) set at US$379.7m, explains the broker.
The Buy rating is maintained and the target is increased to $3.33 from $3.14.
This report was published on August 6, 2024.
Target price is $3.33 Current Price is $2.37 Difference: $0.96
If ASB meets the Petra Capital target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $2.83, suggesting upside of 20.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 7.50 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.27.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 4.7, implying annual growth of N/A.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 50.2.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 8.50 cents and EPS of 11.90 cents.
At the last closing share price the estimated dividend yield is 3.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.3, implying annual growth of 161.7%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 19.2.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BEN BENDIGO & ADELAIDE BANK LIMITED
Banks - Overnight Price: $11.88
Goldman Sachs rates ((BEN)) as Neutral (3) -
Goldman Sachs forecasts Bendigo & Adelaide Bank's FY24 earnings will be down -3.9% year on year, and a final dividend of 32c will be paid.
In mortgages, the broker sees evidence of easing competition given Bendelaides return to the market. Outside of housing, the bank identified the Business and Agriculture segment as a market with unmet demand and a division to focus on to drive growth
Goldman Sachs highlights management has set a target to achieve system level growth by FY26 onward.
Target rises to $11.41 from $10.51, Neutral retained.
This report was published on August 8, 2024.
Target price is $11.41 Current Price is $11.88 Difference: minus $0.47 (current price is over target).
If BEN meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $9.94, suggesting downside of -16.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 62.00 cents and EPS of 88.10 cents.
At the last closing share price the estimated dividend yield is 5.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 86.4, implying annual growth of -1.8%.
Current consensus DPS estimate is 62.0, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 13.8.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 66.00 cents and EPS of 85.70 cents.
At the last closing share price the estimated dividend yield is 5.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 85.3, implying annual growth of -1.3%.
Current consensus DPS estimate is 64.0, implying a prospective dividend yield of 5.4%.
Current consensus EPS estimate suggests the PER is 14.0.
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BGL BELLEVUE GOLD LIMITED
Gold & Silver - Overnight Price: $1.27
Canaccord Genuity rates ((BGL)) as Speculative Buy (1) -
Bellevue Gold released its five year growth plan which is a -45% decline in planned production and around a -14% decrease in all-in-sustaining costs, Canaccord Genuity highlights, with FY25 guidance production below the broker's forecast.
The company plans to increase the mining areas to seven from five with increased underground mine development.
Canaccord Genuity also points to the $150m capital raising to help deleverage the balance sheet.
The target price is lowered to $1.95 from $2.20. Speculative Buy rating unchanged.
This report was published on August 5, 2024.
Target price is $1.95 Current Price is $1.27 Difference: $0.675
If BGL meets the Canaccord Genuity target it will return approximately 53% (excluding dividends, fees and charges).
Current consensus price target is $2.07, suggesting upside of 64.0%(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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.17.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.7, 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 18.8.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 18.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.08.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.0, implying annual growth of 153.7%.
Current consensus DPS estimate is 9.0, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 7.4.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE