Daily Market Reports | Sep 05 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.
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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)
ALC APM APX BGL BOE BTH DDR (2) DEG DOW DSK DXB EMR HGO HSN HVN IGO IPD IPG MAC MDR MIN (2) NXD PDI REA RED (2) SHJ SLX SXL TPG VIT WAF WGX WPR
TPG TPG TELECOM LIMITED
Telecommunication - Overnight Price: $4.88
Goldman Sachs rates ((TPG)) as Sell (5) -
TPG Telecom's 1H profit beat Goldman Sachs forecast by 14% while earnings (EBITDA) were in line.
Management noted the business is tracking towards the mid point of its FY24 earnings guidance.
Following the significant price rises in early-H1, the extent of the decline in Vodafone Postpaid/Prepaid mobile subscribers surprised the analysts, potentially subduing further price increases.
The target rises to $4.40 from $4.35. Sell.
This report was published on September 2, 2024.
Target price is $4.40 Current Price is $4.88 Difference: minus $0.48 (current price is over target).
If TPG meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $5.29, suggesting upside of 6.4%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 18.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.80.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.3, implying annual growth of 441.7%.
Current consensus DPS estimate is 18.0, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 34.8.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 18.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 3.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 48.80.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.0, implying annual growth of 46.9%.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 23.7.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
VIT VITURA HEALTH LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.09
Petra Capital rates ((VIT)) as Upgrade to Speculative Buy from Hold (1) -
Following in-line FY24 results and improved FY25 margin guidance, Petra Capital raises its target for Vitura Health to 12c from 9c and upgrades to Speculative Buy from Hold.
Management noted the lower margin in FY24 (27.6%, down from 34.5% in FY23) was due to intensified competitive pressures within the medicinal cannabis sector. Despite this, unit sales increased by 7% in FY24 via the Canview platform, observes the analyst.
This report was published on August 30, 2024.
Target price is $0.12 Current Price is $0.09 Difference: $0.03
If VIT meets the Petra Capital target it will return approximately 33% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.00.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.43.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WAF WEST AFRICAN RESOURCES LIMITED
Gold & Silver - Overnight Price: $1.36
Canaccord Genuity rates ((WAF)) as Initiation of coverage with Buy (1) -
Canaccord Genuity initiates coverage on unhedged gold producer West African Resources which operates the Sanbrado Gold Mine in central Burkina Faso with a Buy rating and $3.15 target.
The company is also developing the Kiaka Gold Project, 45km south of Sanbrado, with construction well underway and first gold anticipated in the second half of 2025.
In a year's time, Canaccord expects West African Resources to be generating gold from these two mines at a rate of 400kozpa at a cost (AISC) of around US$1,250/oz and yielding $400m in free cash flow (FCF) on an annualised basis.
This report was published on September 5, 2024.
Target price is $3.15 Current Price is $1.36 Difference: $1.79
If WAF meets the Canaccord Genuity target it will return approximately 132% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 27.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.04.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WGX WESTGOLD RESOURCES LIMITED
Gold & Silver - Overnight Price: $2.75
Petra Capital rates ((WGX)) as Buy (1) -
Petra Capital assesses a strong FY24 for Westgold Resources, in the last financial year in the current format, following the successful merger with Karora Resources on August 1.
Over FY24, Westgold transitioned to an unhedged operator focusing on its larger, profitable underground mines.
The target for Westgold Resources rises to $3.75 from $3.67. Buy.
Based on the broker's FY25 production forecasts, Westgold Resources becomes a top five producer on the ASX and the third most leveraged gold exposure (100% unhedged).
This report was published on August 30, 2024.
Target price is $3.75 Current Price is $2.75 Difference: $1
If WGX meets the Petra Capital target it will return approximately 36% (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 12.00 cents and EPS of 49.90 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.51.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 12.00 cents and EPS of 46.50 cents.
At the last closing share price the estimated dividend yield is 4.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.91.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WPR WAYPOINT REIT LIMITED
REITs - Overnight Price: $2.65
Moelis rates ((WPR)) as Buy (1) -
Moelis believes the -7% net tangible assets (NTA) discount Waypoint REIT is currently trading at is relatively attractive when considering the REIT's internalised structure and defensive nature.
First half results revealed a distributable EPS and dividend of 8.28cpu and 8.24cpu, respectively, while FY24 guidance was upgraded to EPS of 16.48cpu (prior range: 16.32-16.48cpu) due to slower-than-expected asset sales, explains the analyst.
The Buy rating is retained, and the target price increases to $2.84 from $2.79.
This report was published on August 30, 2024.
Target price is $2.84 Current Price is $2.65 Difference: $0.19
If WPR meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.65, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 16.50 cents and EPS of 16.50 cents.
At the last closing share price the estimated dividend yield is 6.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.2, implying annual growth of N/A.
Current consensus DPS estimate is 16.3, implying a prospective dividend yield of 6.1%.
Current consensus EPS estimate suggests the PER is 16.5.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 16.20 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 6.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.36.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.4, implying annual growth of 1.2%.
Current consensus DPS estimate is 16.2, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 16.3.
Market Sentiment: -0.2
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.
This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.
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