Daily Market Reports | Oct 21 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)
BMN BRE CGF HUB IMD QOR RWL SMP (2) TRS TYR WDS (2) XRF
BRE BRAZILIAN RARE EARTHS LIMITED
Rare Earth Minerals - Overnight Price: $2.50
Petra Capital rates ((BRE)) as Buy (1) -
Petra Capital reiterates the Buy rating on Brazilian Rare Earths with a $4.55 target price.
The broker stresses the quality of potential metallurgical assets at Monte Alto highlighting the miner has some of the "highest rare earth grades" reported.
Monte Alto also has high concentrations of uranium, niobium, scandium and tantalum.
Petra Capital posits the value currently ascribed does not reflect the true worth of the deposits.
This report was published on October 17, 2024.
Target price is $4.55 Current Price is $2.50 Difference: $2.05
If BRE meets the Petra Capital target it will return approximately 82% (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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.78.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 59.52.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CGF CHALLENGER LIMITED
Wealth Management & Investments - Overnight Price: $6.15
Goldman Sachs rates ((CGF)) as Buy (1) -
As part of Challenger's 1Q update, management reaffirmed FY25 profit guidance but a weaker capital position reduces the company's flexibility to fund earnings growth into FY26, explains Goldman Sachs.
Annuity book growth declined by -1.2% in Q1 and Life annuity sales were down -37% versus the previous corresponding period, impacted by the Aware Super lifetime sale in Q1, note the analysts.
Buy rating and the target falls to $7.82 from $8.00.
This report was published on October 17, 2024.
Target price is $7.82 Current Price is $6.15 Difference: $1.67
If CGF meets the Goldman Sachs target it will return approximately 27% (excluding dividends, fees and charges).
Current consensus price target is $7.83, suggesting upside of 27.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 27.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 4.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.64.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 59.2, implying annual growth of 211.9%.
Current consensus DPS estimate is 27.9, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 10.4.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 28.00 cents and EPS of 48.00 cents.
At the last closing share price the estimated dividend yield is 4.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.81.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.5, implying annual growth of 7.3%.
Current consensus DPS estimate is 29.5, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 9.7.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
HUB HUB24 LIMITED
Wealth Management & Investments - Overnight Price: $67.03
Canaccord Genuity rates ((HUB)) as Buy (1) -
Canaccord Genuity believes Hub24 is very well placed for future growth based on competitive positioning, ongoing growth in the adviser base and current momentum as evidenced by 1Q results.
Record net custodial inflows of $4.0bn were a 44% increase on the previous corresponding period. On an annualised basis these flows exceeded the FY25 estimates of around $12.8bn by the broker and consensus.
The custodial funds under administration (FUA) market movement impact was also strong at $3.1bn, highlight the analysts, with total custodial FUA rising by 41% on the previous corresponding period.
Management noted a "strong pipeline across all customer segments" and reiterated confidence in its FY26 Platform FUA target.
Unchanged Buy rating and $65.80 target.
This report was published on October 16, 2024.
Target price is $65.80 Current Price is $67.03 Difference: minus $1.23 (current price is over target).
If HUB meets the Canaccord Genuity target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $59.67, suggesting downside of -11.0%(ex-dividends)
Forecast for FY25:
Current consensus EPS estimate is 109.8, implying annual growth of 88.8%.
Current consensus DPS estimate is 52.1, implying a prospective dividend yield of 0.8%.
Current consensus EPS estimate suggests the PER is 61.0.
Forecast for FY26:
Current consensus EPS estimate is 133.0, implying annual growth of 21.1%.
Current consensus DPS estimate is 64.9, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 50.4.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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