Daily Market Reports | Sep 09 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)
ASB AZJ BKT BXB CVN DDR DGL FCL FEX GDG GMD GTK IPL LOT (2) MHJ MTO MYE OBM OML ORA PTM REA RHC SFR SMR SNL SVW SYA TPG VIT WES
ASB AUSTAL LIMITED
Commercial Services & Supplies - Overnight Price: $2.13
Petra Capital rates ((ASB)) as Buy (1) -
Petra Capital assesses Austal's underlying FY24 performance was positive and points out the EBIT margin is already trending higher. Support division revenues and margin were higher, while US shipbuilding delivered a 2.9% margin on lower revenue.
A 424bps EBIT margin gain to 3.9% more than offset lower revenue and higher D&A and interest expenses, explains the broker.
Petra Capital reiterates a Buy rating and the target slips to $3.21 from $3.33.
This report was published on September 2, 2024.
Target price is $3.21 Current Price is $2.13 Difference: $1.08
If ASB meets the Petra Capital target it will return approximately 51% (excluding dividends, fees and charges).
Current consensus price target is $3.13, suggesting upside of 49.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 3.00 cents and EPS of 11.60 cents.
At the last closing share price the estimated dividend yield is 1.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.36.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.4, implying annual growth of 226.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 15.7.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 14.50 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 6.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.0, implying annual growth of 34.3%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 1.0%.
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
AZJ AURIZON HOLDINGS LIMITED
Transportation & Logistics - Overnight Price: $3.35
Jarden rates ((AZJ)) as Underweight (4) -
Jarden deconstructs the market expectations for Aurizon Holdings from its 2021 strategy day when management set a baseline EBITDA growth rate for Bulk and OneRail.
Due to differences in earnings growth before and after interest/tax, the broker believes consensus earnings have been too high for Bulk with average EBIT growth outlook cut by around -20% since FY24 out to FY27.
The broker notes EPS forecasts sit around -4% and -5% compared to consensus for FY25/FY26, respectively.
Underweight rating and $3.25 target unchanged.
This report was published on September 2, 2024.
Target price is $3.25 Current Price is $3.35 Difference: minus $0.1 (current price is over target).
If AZJ meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.52, suggesting upside of 5.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 19.20 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 5.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.7, implying annual growth of 12.0%.
Current consensus DPS estimate is 20.1, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 13.5.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 20.90 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 6.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.1, implying annual growth of 9.7%.
Current consensus DPS estimate is 22.6, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 12.3.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BKT BLACK ROCK MINING LIMITED
New Battery Elements - Overnight Price: $0.05
Petra Capital rates ((BKT)) as Buy (1) -
As a cornerstone for the equity funding of the Mahenge graphite mine, explains Petra Capital, POSCO has signed the long-awaited binding agreement to invest -US$40m into shares of Black Rock Mining.
POSCO will now commit as an offtaker for Module 2 fines graphite on top of Module 1 offtake, explains the analyst.
Black Rock has previously secured US$153m in bank funding and a US$10m prepayment from POSCO.
Buy rating retained. the target falls to 21c from 25c on the issue of additional shares, explains Petra Capital.
This report was published on September 5, 2024.
Target price is $0.21 Current Price is $0.05 Difference: $0.156
If BKT meets the Petra Capital target it will return approximately 289% (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 minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.00.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BXB BRAMBLES LIMITED
Transportation & Logistics - Overnight Price: $18.63
Jarden rates ((BXB)) as Overweight (2) -
Jarden highlights some of the updates which may be presented at Brambles' Investor Day, Sept 11-13 including the sustainability of capex cuts; the factors for increased operating leverage beyond FY25 and plans for the balance sheet/capital management.
The analyst is also seeking answers on return on capex; the future expectations around pricing/competition and a finalising of the irrecoverable pooling equipment provision debate.
Overweight rating and $17.90 target price unchanged. No changes to earnings forecasts.
This report was published on September 3, 2024.
Target price is $17.90 Current Price is $18.63 Difference: minus $0.73 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $18.76, suggesting upside of 1.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 84.56 cents and EPS of 93.69 cents.
At the last closing share price the estimated dividend yield is 4.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 93.5, implying annual growth of N/A.
Current consensus DPS estimate is 58.8, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 19.7.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 91.86 cents and EPS of 101.90 cents.
At the last closing share price the estimated dividend yield is 4.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 105.8, implying annual growth of 13.2%.
Current consensus DPS estimate is 66.7, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 17.4.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
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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