Daily Market Reports | Oct 23 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)
AD8 AOV ARB CAR COL DHG GDF GDG GMD MAC MTS PPS REA SEK WOW
AD8 AUDINATE GROUP LIMITED
Hardware & Equipment - Overnight Price: $8.96
Moelis rates ((AD8)) as Hold (3) -
Earlier in October Moelis initiated coverage with a Hold rating due to an opaque near-term outlook as supply chains normalise following covid. It was felt earnings will be skewed to the 2H of FY25.
This week's trading update provided at the company's AGM has played to that script with Audinate Group effectively issuing yet another profit warning as buying orders continue to underwhelm management's expectation.
Q2 is now looking like Q1, so no improvement is anticipated until H2. Moelis has reduced forecasts, highlighting with no cost relief the impact on earnings is expected to be "significant".
Commentary broadly suggests a year of transition for the company can still involve more negative outcomes as clarity is not around. Hold. Target price falls to $9.45. Revised forecasts now see two years of Audinate reporting losses.
This report was published on October 22, 2024.
Target price is $9.45 Current Price is $8.96 Difference: $0.49
If AD8 meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $11.58, suggesting upside of 32.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 11.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 75.93.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -2.5, 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 N/A.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 448.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 5.5, 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 159.5.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AOV AMOTIV LIMITED
Automobiles & Components - Overnight Price: $10.83
Canaccord Genuity rates ((AOV)) as Buy (1) -
Amotiv's AGM update inferred 1Q25 revenues rose 3.5% against a year earlier. Canaccord Genuity states this is basically in line with forecast FY25 revenue growth of 4.5%.
Management suggested a stronger 2H25 because of Jan 1 price rises.
A buyback of 5% of issued capital was also announced. The AGM update is viewed by the broker as neutral.
Buy rating reiterated as the stock is believed to be "fundamentally too cheap for its outlook and prospects". Target price unchanged $14.40.
This report was published on October 21, 2024.
Target price is $14.40 Current Price is $10.83 Difference: $3.57
If AOV meets the Canaccord Genuity target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $13.15, suggesting upside of 20.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 50.00 cents and EPS of 90.00 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 86.2, implying annual growth of 21.9%.
Current consensus DPS estimate is 45.0, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 12.7.
Forecast for FY26:
Current consensus EPS estimate is 95.6, implying annual growth of 10.9%.
Current consensus DPS estimate is 47.1, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 11.4.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARB ARB CORPORATION LIMITED
Automobiles & Components - Overnight Price: $42.19
Wilsons rates ((ARB)) as Overweight (1) -
ARB Corp reported sales growth of 6.5% in 1Q25 on the previous corresponding period with steady gross margins, Wilsons notes. Net profit declined slightly from labour management and transaction costs.
Management did not offer any guidance but suggested strong orderbooks and a growing export order position across key markets. New stores and products are helping to drive higher "fitment capacity" which is offsetting reduced vehicles sales.
Although the result was softer than expected, Wilsons lifts its target price to $50.27 from $47.85, maintaining an Overweight rating.
This report was published on October 18, 2024.
Target price is $50.27 Current Price is $42.19 Difference: $8.08
If ARB meets the Wilsons target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $43.30, suggesting upside of 2.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 72.00 cents and EPS of 131.20 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 32.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 135.7, implying annual growth of 8.6%.
Current consensus DPS estimate is 73.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.0.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 78.50 cents and EPS of 143.60 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.38.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 152.2, implying annual growth of 12.2%.
Current consensus DPS estimate is 83.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE