Daily Market Reports | Oct 14 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ADT APA ASL BGL CAI CEL CMM CXO CYL DEG DRE EMR EVN FCL GMD GOR GYG IGO IPX (2) KCN LNW LOT LTR MIN NST NWL (2) OBM PDI PNR PRU PTM (2) RIO RMS RRL RSG RXL SDR SMI SPR TCG THL TLC (2) TTM TWE VAU WAF WGX
GYG GUZMAN Y GOMEZ LIMITED
Food, Beverages & Tobacco - Overnight Price: $38.47
Wilsons rates ((GYG)) as Overweight (1) -
Wilsons comments Guzman y Gomez's 1Q25 trading update came in as strong with same store sales growth in Australia up 8.7% (including Japan and Singapore).
The growth was attributed to the "clean is the new healthy" campaign, strong delivery performance and value menu items such as the $12 chicken mini meal.
Management expects the company to meet FY25 prospectus guidance including the opening of 31 new restaurants in Australia. Five new stores have been opened domestically since the FY24 result.
Wilsons remains Overweight with a $41.14 target price.
This report was published on October 10, 2024.
Target price is $41.14 Current Price is $38.47 Difference: $2.67
If GYG meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $39.48, suggesting upside of 4.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 16.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 230.36.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.1, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 249.5.
Forecast for FY26:
Wilsons forecasts a full year FY26 EPS of 25.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 153.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.3, implying annual growth of 80.8%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 0.4%.
Current consensus EPS estimate suggests the PER is 138.0.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IGO IGO LIMITED
Nickel - Overnight Price: $5.43
Goldman Sachs rates ((IGO)) as Buy (1) -
The analysts at Goldman Sachs believe the recent bounce in lithium company share prices has run ahead of commodity fundamentals.
Due to the number of lithium projects still ramping-up through 2024 and into 2025, the broker continues to factor in near-term pricing weakness.
On a 12-month view, IGO Ltd remains the only positive free cash flow (FCF) stock under Goldman's lithium coverage.
Leading into quarterly operational reporting, the broker maintains a Buy rating, while the target rises to $6.40 from $6.35. It's felt Greenbushes will perform broadly in line with expectations though nickel may be weaker.
This report was published on October 10, 2024.
Target price is $6.40 Current Price is $5.43 Difference: $0.97
If IGO meets the Goldman Sachs target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $5.73, suggesting upside of 3.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 3.00 cents and EPS of minus 6.00 cents.
At the last closing share price the estimated dividend yield is 0.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 90.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.7, implying annual growth of 1981.1%.
Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 71.6.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 4.00 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 0.74%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 67.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.1, implying annual growth of 213.0%.
Current consensus DPS estimate is 10.4, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 22.9.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
IPX IPERIONX LIMITED
Industrial Metals - Overnight Price: $3.56
Canaccord Genuity rates ((IPX)) as Speculative Buy (1) -
After signing a binding 45-month supply contract beginning next year, Iperionx is expected to earn around US$11m in revenue with Ford Motor Company for manufactured titanium metal components, explains Canaccord Genuity.
In the broker's view, this contract win de-risks the investment case for Iperionx by providing a material validation of management's commercialisation plans. The target is raised to $4.65 from $3.60. Speculative Buy.
The analysts see potential for Iperionx to become a supplier to the US Army/Navy/Airforce.
Last August, the company received a significant funding boost from the US Department of Defence under the Defence Production Act (DPA) Title III to address vulnerabilities in the titanium supply chain.
This report was published on October 10, 2024.
Target price is $4.65 Current Price is $3.56 Difference: $1.09
If IPX meets the Canaccord Genuity target it will return approximately 31% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 356.00.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 89.00.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Petra Capital rates ((IPX)) as Initiation of coverage with Buy (1) -
The analyst at Petra Capital has decided to initiate research coverage on US-based titanium metal producer Iperionx at this juncture as the technology is proven, execution risks are receding, and revenue growth is imminent.
IperionX has exclusive rights to a range of patented process technologies for production of titanium metal powders/products from titanium scrap/mineral feedstocks.
The broker considers the intellectual property (IP) is de-risked given successful pilot production and a commercial-scale plant which is currently commissioning. First production is due in late-2024 with material revenue expected by late-2025.
Iperionx should receive a tailwind from a growing global titanium metal market driven by aerospace and defence sectors, explains the analyst, and government support to re-shore manufacturing and de-risk critical material supply chains.
Petra Capital begins with a Buy rating and $4.93 target.
This report was published on October 11, 2024.
Target price is $4.93 Current Price is $3.56 Difference: $1.37
If IPX meets the Petra Capital target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 178.00.
Forecast for FY26:
Petra Capital forecasts a full year FY26 EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 356.00.
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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