Daily Market Reports | 11:00 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.
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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)
AOV ASK BVS CGF (2) COH CSL EBR EVN JHX (2) LIC MFG NDO NUF NWL ORG PME (2) PWH RGN SEK (2) SGM TLS TPW (3) TRJ TWE
AOV AMOTIV LIMITED
Automobiles & Components - Overnight Price: $10.74
Wilsons rates ((AOV)) as Overweight (1) -
Amotiv delivered FY24 earnings in line with guidance and Wilsons, but with stronger cash flow driving a material reduction in the leverage ratio.
The broker observes a favourable outlook for the business, driven by a growing car "parc" (vehicles on the road) and structural shift towards 4WDs and SUVs.
The investment thesis is further complemented by Amotivs effective margin management, Wilsons suggests, and investment in growth initiatives that will deliver incremental earnings through FY25 and more so into FY26.
Adjustments to earnings forecasts take the target down to $12.69 from $13.10, Overweight retained.
This report was published on August 16, 2024.
Target price is $12.69 Current Price is $10.74 Difference: $1.95
If AOV meets the Wilsons target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $12.92, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 43.00 cents and EPS of 89.60 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.99.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 84.8, implying annual growth of 19.9%.
Current consensus DPS estimate is 45.8, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 12.7.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 47.00 cents and EPS of 99.30 cents.
At the last closing share price the estimated dividend yield is 4.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.82.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 94.8, implying annual growth of 11.8%.
Current consensus DPS estimate is 47.1, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 11.3.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASK ABACUS STORAGE KING
REITs - Overnight Price: $1.21
Moelis rates ((ASK)) as Hold (3) -
Moelis keeps its Hold rating and $1.34 target for Abacus Storage King following "solid" operating results. Storage remains more resilient-than-expected by the analyst, translating to robust valuations and steady capitalisation rates.
Revenue per available square metre (RevPAM) rose by 4.6% for the established portfolio and occupancy increased by 60bps, with rate increases accounting for the balance of growth in the period, explains the broker.
This report was published on August 14, 2024.
Target price is $1.34 Current Price is $1.21 Difference: $0.135
If ASK meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $1.37, suggesting upside of 13.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 6.10 cents and EPS of 6.30 cents.
At the last closing share price the estimated dividend yield is 5.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.13.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.3, implying annual growth of -40.1%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 19.1.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 6.20 cents and EPS of 6.40 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.83.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.4, implying annual growth of 1.6%.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 5.3%.
Current consensus EPS estimate suggests the PER is 18.8.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BVS BRAVURA SOLUTIONS LIMITED
Wealth Management & Investments - Overnight Price: $1.31
Wilsons rates ((BVS)) as Overweight (1) -
Bravura Solutions' FY24 numbers were all in line with guidance and consensus. The annualisation of further cost out remains the key financial driver in the short term, Wilsons suggests.
The broker sees FY24 as the year of stabilisation, FY25 as the year of consolidation and incremental investment, and FY26 as the year when Bravura returns to top-line growth and favourable operating leverage comes through.
The company announced a capital buyback of $20m with the flagged, but yet-to-be-approved $75m capital return expected in March quarter.
Target rises to $1.47 from $1.43, Overweight retained.
This report was published on August 16, 2024.
Target price is $1.47 Current Price is $1.31 Difference: $0.155
If BVS meets the Wilsons target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.78.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 3.40 cents and EPS of 5.70 cents.
At the last closing share price the estimated dividend yield is 2.59%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.07.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CGF CHALLENGER LIMITED
Wealth Management & Investments - Overnight Price: $7.39
Goldman Sachs rates ((CGF)) as Buy (1) -
Challenger's FY24 normalised net profit before tax (NPBT) metric was above the top end of guidance range for FY24, with the $317.8m generated in H2 exceeding the $308.4m forecast by Goldman Sachs.
A 12bps underlying improvement in the product cash margin from mix, duration et cetera was greater-than-expected by the analysts.
Around -2% weaker than the consensus estimate, FY25 normalised profit guidance is for between $440-$480m and management guided to meet its return on equity (ROE) target for FY25.
Buy rating and the target rises to $8.00 from $7.50.
This report was published on August 14, 2024.
Target price is $8.00 Current Price is $7.39 Difference: $0.61
If CGF meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $7.88, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 27.00 cents and EPS of 59.40 cents.
At the last closing share price the estimated dividend yield is 3.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 58.5, implying annual growth of 208.2%.
Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 12.6.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 28.00 cents and EPS of 62.00 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.4, implying annual growth of 8.4%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 11.7.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((CGF)) as Overweight (2) -
Jarden notes Challenger reported FY24 earnings above forecasts and up 17% on FY23.
Life earnings contributed, while the broker likes the imrpovement in its capitalisation to 1.67x, a rise of 17 basis points from 1H24.
Jarden makes slights revisions in earnings forecasts. Target price raised to $7.80 from $7.50. Overweight rating retained.
This report was published on August 14, 2024.
Target price is $7.80 Current Price is $7.39 Difference: $0.41
If CGF meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $7.88, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 26.10 cents and EPS of 61.80 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.96.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 58.5, implying annual growth of 208.2%.
Current consensus DPS estimate is 27.7, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 12.6.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 26.10 cents and EPS of 63.20 cents.
At the last closing share price the estimated dividend yield is 3.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.4, implying annual growth of 8.4%.
Current consensus DPS estimate is 29.3, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 11.7.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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