Daily Market Reports | Sep 02 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)
ABB AIA ALK (2) AMA ANG ARU ASB ASG ASN ATA AX1 BEN BHP BOQ CEH CKF CNU DRE EDV EQT EVT FPH GDI GNP GOR GYG HAS IDX ILU ING JIN JLG KGN LBL LFG LIN LOV LRK LYC MEI MMS MPL MXI MYX NAN (2) NHF NXT PAN PFP PLS PLY PPS (2) PSI RDY REG RUL SHL SLH SNL SPK THL TLX TYR VHM WDS
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $3.37
Wilsons rates ((ABB)) as Market Weight (3) -
Aussie Broadband reported 27% revenue growth and 35% underlying earnings at the top end of its gudiance range, and its robust balance sheet facilitated a maiden, fully franked 4c dividend. FY25 earnings guidance was reiterated.
While the result was sound, Wilsons feels the 12% share price move was stronger than necessary, and likely discounts the impact of the upcoming Sep Q skewed Origin migration.
Origin migrating will re-base Aussies subs growth, the broker notes, there is considerable competition in the digital-first and value-focused segment of the broadband market; and the cost to successfully build a brand may be higher (and take longer) than expected.
Market Weight retained, target rises 9% to $3.62.
This report was published on August 27, 2024.
Target price is $3.62 Current Price is $3.37 Difference: $0.25
If ABB meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 4.40 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 1.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.92.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 5.70 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 1.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.04.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AIA AUCKLAND INTERNATIONAL AIRPORT LIMITED
Infrastructure & Utilities - Overnight Price: $6.95
Jarden rates ((AIA)) as Neutral (3) -
After adjusting for flood-related insurance income and expenses, Auckland International Airport delivered normalised profit in the middle of the guidance range and in line with Jarden's forecasts.
Aeronautical revenue was up 79% on returning international passenger volumes and increased pricing. Retail performed well with revenue up 41%. FY25 guidance assumes 8.6m domestic PAX and 10.5m international, modestly above the broker's forecasts.
Jarden sees Auckland International Airport as a high-quality asset with a unique position as NZ's largest airport operator, which has seen it generate meaningful returns over a sustained period, most notably in the unregulated parts of the business.
Target falls to NZ$8.03 from NZ$8.13, Neutral retained.
This report was published on August 23, 2024.
Current Price is $6.95. Target price not assessed.
Current consensus price target is $8.25, suggesting upside of 18.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 13.19 cents and EPS of 18.54 cents.
At the last closing share price the estimated dividend yield is 1.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.6, implying annual growth of N/A.
Current consensus DPS estimate is 13.1, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 37.4.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 14.76 cents and EPS of 21.03 cents.
At the last closing share price the estimated dividend yield is 2.12%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.9, implying annual growth of 12.4%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 33.3.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
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: $0.42
Moelis rates ((ALK)) as Buy (1) -
Alkane Resources posted a FY24 result that was softer than Moelis expected because of higher discretionary expenditure at the corporate level. The broker notes the year was a significant transition period the company as it shifted to new underground operations at Roswell.
The broker looks forward to seeing significant milestones from the Tomingley expansion that should drive a meaningful increase in production in FY25.
The stock is expected to trade "sideways" during the capital expenditure phase on new operations at Roswell and San Antonio until a cash flow inflection point is reached. Buy rating and $0.65 target.
This report was published on August 26, 2024.
Target price is $0.65 Current Price is $0.42 Difference: $0.225
If ALK meets the Moelis target it will return approximately 53% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.69.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.59.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Petra Capital rates ((ALK)) as Buy (1) -
Alkane Resources delivered FY24 results that were largely in line with Petra Capital. The broker considers FY24 a transition year with the successful start of production from Roswell in the June quarter.
Full year feed from Roswell should support a production uplift of around 70,000 ounces in FY25 and expansion drive increases to 90,000 ounces in FY26.
The rising production profile, as well as of tailing off in capital expenditure, should mean cash flow turns positive from the September quarter of FY25, the broker asserts, retaining a Buy rating and lowering the target to $1.00 from $1.13.
This report was published on August 27, 2024.
Target price is $1.00 Current Price is $0.42 Difference: $0.575
If ALK meets the Petra Capital target it will return approximately 135% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.46.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 10.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 3.94.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMA AMA GROUP LIMITED
Automobiles & Components - Overnight Price: $0.06
Canaccord Genuity rates ((AMA)) as Buy (1) -
FY25 guidance is for AMA Group's normalised EBITDA (pre-AASB16) to be above the FY24 number of $49m, which allows for an earnings decline in Capital Smart of up to -$9m, notes Canaccord Genuity.
Capital Smart provides rapid repair services for vehicles that have sustained minor to moderate damage.
The earnings decline for Capital Smart relates to early benefits realised from Project Shift that was specific to Capital Smart in FY24, explains the broker.
Management's growth initiatives include a network expansion within Capital Smart, along with brownfield & greenfield site growth in Collision & Heavy Vehicle.
The Buy rating and 10 cents target are maintained.
This report was published on August 26, 2024.
Target price is $0.10 Current Price is $0.06 Difference: $0.045
If AMA meets the Canaccord Genuity target it will return approximately 82% (excluding dividends, fees and charges).
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 0.00 cents.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.50.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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