Daily Market Reports | Aug 26 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)
ANZ AUB AZL BAP (2) BRG (4) CHC CTD (2) CWP CWY (2) DMP (3) DTL (3) FBU FCL HMC HSN IAG ILU MGH NSR PPM PWR PXA RIC SFX SGM SHA (2) SLC STO SXE TLC (2) VNT WTC
SXE SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED
Mining Sector Contracting - Overnight Price: $1.90
Moelis rates ((SXE)) as Buy (1) -
Southern Cross Electrical Engineering reported FY24 slightly ahead of expectations, Moelis assesses, with a boost from infrastructure growth.
The company's order book stands at $720m, a record. Infrastructure represents two-thirds with the balance split between commercial and resources. Some 93% of the work is in NSW, ACT and WA, the broker states.
Management reiterated guidance for FY25, with infrastructure the key driver of growth, the analyst notes. Buy rated. Target price adjusts to $2.10 from $1.94.
This report was published on August 21, 2024.
Target price is $2.10 Current Price is $1.90 Difference: $0.2
If SXE meets the Moelis target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 7.00 cents and EPS of 12.30 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.45.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 7.00 cents and EPS of 13.20 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.39.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TLC LOTTERY CORPORATION LIMITED
Gaming - Overnight Price: $4.85
Goldman Sachs rates ((TLC)) as Neutral (3) -
Lottery Corp posted FY24 results slightly ahead of Goldman Sachs estimates. The Saturday Lotto game change will be implemented in FY25 with further potential game innovation in FY26-27 for Set for Life and Powerball.
The broker revises FY25-26 EBIT down -2-4% and reduces the target to $5.40 from $5.60. Neutral.
This report was published on August 22, 2024.
Target price is $5.40 Current Price is $4.85 Difference: $0.55
If TLC meets the Goldman Sachs target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.53, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 16.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.2, implying annual growth of -2.2%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 26.6.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 18.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 3.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.5, implying annual growth of 7.1%.
Current consensus DPS estimate is 18.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 24.9.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((TLC)) as Neutral (3) -
Jarden assesses Lottery Corp over-earned by around $60m EBITDA in the FY24 results because of a record jackpot season, leading to $250m in revenue above trend.
A 2.5c special dividend was announced bringing the total to 18.5c (100% franked) for FY24.
The broker expects consensus downgrades between -4% to -5% for FY25 on the back of normalised jackpots, inflation costs and more up-to-date market factors.
Neutral rating. Target revised to $5.10 from $5.
This report was published on August 21, 2024.
Target price is $5.10 Current Price is $4.85 Difference: $0.25
If TLC meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $5.53, suggesting upside of 13.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 16.00 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 3.30%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.2, implying annual growth of -2.2%.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 3.7%.
Current consensus EPS estimate suggests the PER is 26.6.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 16.50 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 3.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.5, implying annual growth of 7.1%.
Current consensus DPS estimate is 18.9, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 24.9.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
VNT VENTIA SERVICES GROUP LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $4.39
Canaccord Genuity rates ((VNT)) as Buy (1) -
Strong growth in the Defence & Social Infrastructure and Telecommunications divisions propelled FY24 underlying earnings (EBITDA) 9% higher than in FY23 to $245.8m, compared to Canaccord Genuity's $247m estimate.
The broker's main highlight was outlook commentary by management, with guidance upgraded to FY25 NPATA growth of between 10%-12%, up from 7-10%. It's noted key defence contract decisions are pending and will likely be a positive share price catalyst.
An interim dividend of 9.35 cents was declared representing a payout ratio of 75%.
The broker suggests high levels of contracted work underpin the immediate outlook. The Buy rating is maintained, and the target rises to $4.75 from $4.40.
This report was published on August 22, 2024.
Target price is $4.75 Current Price is $4.39 Difference: $0.36
If VNT meets the Canaccord Genuity target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $4.53, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 20.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 4.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.8, implying annual growth of 11.8%.
Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 4.4%.
Current consensus EPS estimate suggests the PER is 17.7.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 22.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.01%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.3, implying annual growth of 10.1%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 16.1.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WTC WISETECH GLOBAL LIMITED
Cloud services - Overnight Price: $120.14
Goldman Sachs rates ((WTC)) as Neutral (3) -
FY24 results from WiseTech Global were largely ahead of Goldman Sachs estimates with EBITDA slightly above the top end of guidance. FY25 guidance is strong amid CargoWise growth expectations of 31-37%.
The latter ameliorates the broker's concerns regarding the company's ability to sustain around 30% revenue growth.
The broker suggests one of the negatives in the results is a material ramp up in earnings for CargoWise that implies very strong initial usage of new products, which may slow going forward. Neutral retained. Target rises 14% to $104.
This report was published on August 21, 2024.
Target price is $104.00 Current Price is $120.14 Difference: minus $16.14 (current price is over target).
If WTC meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $109.17, suggesting downside of -9.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 25.00 cents and EPS of 123.00 cents.
At the last closing share price the estimated dividend yield is 0.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 97.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 120.3, implying annual growth of 51.5%.
Current consensus DPS estimate is 23.6, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 99.9.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 33.00 cents and EPS of 164.00 cents.
At the last closing share price the estimated dividend yield is 0.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.26.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 165.0, implying annual growth of 37.2%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 72.8.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.
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