Daily Market Reports | Sep 30 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ALL BMN CDA (2) ELD FMG KMD LNW PME PMV WEB WTC XRO
ALL ARISTOCRAT LEISURE LIMITED
Gaming - Overnight Price: $58.17
Jarden rates ((ALL)) as Overweight (2) -
Jarden highlights the successful court win for Aristocrat Leisure against Light & Wonder ((LNW)) with the Nevada court granting an injunction against Dragon Train. Light & Wonder is appealing the decision.
The broker stresses Aristocrat Leisure is asset light and intellectual property heavy with the gaming industry very litigious. The company spends 13% of annual sales on design and development.
Jarden believes some market share gains might be achieved and lifts FY25 EPS forecast by 2.4%. FY24 results are due on Nov 13.
No change in Overweight rating. Target price lifts to $59 from $56.
This report was published on September 25, 2024.
Target price is $59.00 Current Price is $58.17 Difference: $0.83
If ALL meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $57.47, suggesting downside of -1.2%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 246.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.64.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 238.4, implying annual growth of 7.2%.
Current consensus DPS estimate is 78.5, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 24.4.
Forecast for FY25:
Jarden forecasts a full year FY25 EPS of 268.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.66.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 262.6, implying annual growth of 10.2%.
Current consensus DPS estimate is 88.9, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 22.2.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BMN BANNERMAN ENERGY LIMITED
Uranium - Overnight Price: $3.14
Canaccord Genuity rates ((BMN)) as Speculative Buy (1) -
Management at Bannerman Energy has expanded the projected window for a financial investment decision (FID) at the Etango project and is targeting a positive decision in 2025.
This timeline neatly aligns with Canaccord Genuity's prior forecast, and the broker forecasts first production in 2029.
Importantly, suggest the analysts, the bulk earthworks contract has been awarded to a consortium led by Civmec ((CVL)) and NRW Holdings ((NWH)).
Speculative Buy rating and $4.33 target retained.
This report was published on September 26, 2024.
Target price is $4.33 Current Price is $3.14 Difference: $1.19
If BMN meets the Canaccord Genuity target it will return approximately 38% (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 minus 5.31 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 59.17.
Forecast for FY26:
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CDA CODAN LIMITED
Hardware & Equipment - Overnight Price: $16.13
Canaccord Genuity rates ((CDA)) as Buy (1) -
Bolstering the Tactical Communications division and providing a 4% increase to Canaccord Genuity's FY26 forecast, Codan will purchase Kagwerks (SKT2 LLC dba Kagwerks) for -$33.6m.
Kagwerks is a US-based provider of tactical operator-worn networking communications technologies used in a military environment. The broker anticipates Kagwerk' DOCK platform will benefit from the greater scale, distribution and access to a larger addressable market.
The Buy rating is maintained. The target rises to $16.76 from $15.34. Codan is now a high margin earnings compounder, according to the broker, and return metrics are rapidly improving.
This report was published on September 26, 2024.
Target price is $16.76 Current Price is $16.13 Difference: $0.63
If CDA meets the Canaccord Genuity target it will return approximately 4% (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 26.00 cents and EPS of 54.00 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.87.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 31.00 cents and EPS of 66.00 cents.
At the last closing share price the estimated dividend yield is 1.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.44.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Moelis rates ((CDA)) as Buy (1) -
Codan has expanded its Tactical Communications technology suite, observes Moelis, by acquiring US-based SKT2 LLC dba Kagwerks for -$33.6m together with royalty payments for five years post-closing.
Kagwerks, for short, is the global leader in operator-worn networking communications technologies and provides equipment to the US Department of Defence through the Nett Warrior Program.
The Buy rating is maintained. The target price rises to $18.15 from $16.85 after the broker increases FY25-FY27 EPS forecasts by 2.3%, 6.0% and 6.7%, respectively, due to the acquisition.
This report was published on September 26, 2024.
Target price is $18.15 Current Price is $16.13 Difference: $2.02
If CDA meets the Moelis target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 27.60 cents and EPS of 55.20 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.22.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 34.40 cents and EPS of 68.60 cents.
At the last closing share price the estimated dividend yield is 2.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.51.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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