Australian Broker Call *Extra* Edition – Aug 22, 2024

Daily Market Reports | Aug 22 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)

A2M   AD8   ANZ   ARB   BBN   BSL   CEN   CUV   DXS   EVS (2)   GPT   HUB (3)   INA   KMD   MAD   MAH   MND   OML   PRN   REH   RWC   S32   SUN (2)   VCX   WBC (2)   WGX  

A2M    A2 MILK COMPANY LIMITED

Dairy - Overnight Price: $5.65

Jarden rates ((A2M)) as Overweight (2) -

a2 Milk Co's headline FY24 result metrics were slightly behind Jarden's estimates. That said, the China revenue performance was in line with expectations and once again delivered against a challenging total China market, down -10.7% in value terms.

Management noted the A2 protein segment continued to grow strongly at 43% year on year and is now 18% of China's value (11% in FY23). The other notable call out was the English label segment returning to growth.

FY25 guidance for mid-single digit growth is a miss (consensus high single digit), the key variance mostly attributable to 1H25 supply issues which are operational in nature with Synlait Milk ((SM1)) and targeted to be resolved by 1H25, the broker notes.

Jarden retains Overweight on valuation support and core infant formula performance. Target falls to NZ$7.25 from NZ$7.55.

This report was published on August 21, 2024.

Current Price is $5.65. Target price not assessed.
Current consensus price target is $6.32, suggesting upside of 11.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 22.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 23.9, implying annual growth of N/A.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 0.6%.
Current consensus EPS estimate suggests the PER is 23.6.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 24.35 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.2, implying annual growth of 13.8%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 20.8.

This company reports in NZD. 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

AD8    AUDINATE GROUP LIMITED

Hardware & Equipment - Overnight Price: $10.46

Canaccord Genuity rates ((AD8)) as Buy (1) -

Canaccord Genuity highlights Audinate Group pre-released most of its FY24 results which left no notable surprises at the FY24 earnings report.

Management reiterated a slightly weaker FY25 gross profit with earnings returning to a "more predictable order pattern in FY26" as inventories unwind and discounting of older stock flows through.

The broker believes much of the FY25 disruption is cyclical and not structural.

Buy rating with $12 target unchanged.

This report was published on August 19, 2024.

Target price is $12.00 Current Price is $10.46 Difference: $1.54
If AD8 meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $11.53, suggesting upside of 10.2%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 261.50.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 1.2, implying annual growth of -90.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 871.7.

Forecast for FY26:

Canaccord Genuity forecasts a full year FY26 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 116.22.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.8, implying annual growth of 550.0%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 134.1.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANZ    ANZ GROUP HOLDINGS LIMITED

Banks - Overnight Price: $29.95

Jarden rates ((ANZ)) as Neutral (3) -

ANZ Bank reported a "sound" 3Q24 result according to Jarden.

Bad and doubtful debts came in below expectations; the CET1 ratio of around 12% will allow for more share buybacks and Jarden revises EPS forecasts by 0.6% in FY24, 1.9% in FY25.

Despite the attractive valuation, the broker's preferred exposure is Westpac Bank ((WBCC). Neutral rated. Target price $29.50.

This report was published on August 20, 2024.

Target price is $29.50 Current Price is $29.95 Difference: minus $0.45 (current price is over target).
If ANZ meets the Jarden target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $27.66, suggesting downside of -7.7%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY24:

Jarden forecasts a full year FY24 dividend of 167.00 cents and EPS of 229.60 cents.
At the last closing share price the estimated dividend yield is 5.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.04.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 225.7, implying annual growth of -4.7%.
Current consensus DPS estimate is 165.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 13.3.

Forecast for FY25:

Jarden forecasts a full year FY25 dividend of 168.00 cents and EPS of 235.30 cents.
At the last closing share price the estimated dividend yield is 5.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.73.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 223.9, implying annual growth of -0.8%.
Current consensus DPS estimate is 167.3, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 13.4.

Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ARB    ARB CORPORATION LIMITED

Automobiles & Components - Overnight Price: $41.60

Wilsons rates ((ARB)) as Overweight (1) -

ARB Corp delivered a "robust" FY24 result, Wilsons asserts, which was in line with expectations. The highlights include acceleration in sales growth in the second half and a consolidation of gross margin recovery.

The broker is increasingly confident that sales growth will accelerate further in FY25, noting the momentum building in the US, the resilience in the Australian aftermarket and the company's confidence in pre-tax profit margins of more than 20%.

Wilsons increases its target to $47.52 from $44.39 and retains an Overweight rating.

This report was published on August 21, 2024.

Target price is $47.52 Current Price is $41.60 Difference: $5.92
If ARB meets the Wilsons target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $40.42, suggesting downside of -2.8%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY25:

Wilsons forecasts a full year FY25 dividend of 75.00 cents and EPS of 135.80 cents.
At the last closing share price the estimated dividend yield is 1.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.63.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 136.7, implying annual growth of 9.4%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 30.4.

Forecast for FY26:

Wilsons forecasts a full year FY26 dividend of 81.00 cents and EPS of 144.20 cents.
At the last closing share price the estimated dividend yield is 1.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.85.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 148.3, implying annual growth of 8.5%.
Current consensus DPS estimate is 82.1, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 28.1.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


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