Daily Market Reports | Oct 24 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)
ACF AMP ARB BPT (3) DUG EVT FLT (2) GMD HGO (2) HLS IDX LGP OBM (2) OFX PPT S32 SHL STO (2) TWE
ACF ACROW LIMITED
Building Products & Services - Overnight Price: $1.08
Moelis rates ((ACF)) as Initiation of coverage with Buy (1) -
Moelis initiates coverage of Acrow with a Buy rating and $1.08 target price.
The company is a major framework and access operator including formwork and scaffolding with 15 branches, and a 400-person workforce across Australia.
Infrastructure and civil projects are expected to act as earnings tailwinds for Acrow. Moelis forecasts compound average EPS growth of 9.5% for FY24 to FY26.
The stock is seen as having a reasonable valuation. Ongoing momentum is anticipated from record hire revenue and pipeline infrastructure projects.
Buy. Target $1.08.
This report was published on October 18, 2024.
Target price is $1.08 Current Price is $1.08 Difference: minus $0.005 (current price is over target).
If ACF meets the Moelis target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.28, suggesting upside of 18.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 6.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 5.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.1, implying annual growth of 36.4%.
Current consensus DPS estimate is 5.6, implying a prospective dividend yield of 5.2%.
Current consensus EPS estimate suggests the PER is 9.0.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 4.80 cents and EPS of 12.80 cents.
At the last closing share price the estimated dividend yield is 4.42%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 12.5, implying annual growth of 3.3%.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 5.5%.
Current consensus EPS estimate suggests the PER is 8.7.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMP AMP LIMITED
Wealth Management & Investments - Overnight Price: $1.44
Jarden rates ((AMP)) as Neutral (3) -
Third quarter flows for AMP broadly matched Jarden's forecasts across the key Australian Wealth Management (AWM) and Bank divisions.
While lowering outer year forecasts for net interest margin (NIM) for the Bank to better reflect continued competition, the broker highlights a potential inflection point for AWM flows in the next 12 months based on an improving trajectory.
The Neutral rating and $1.35 target are unchanged.
This report was published on October 18, 2024.
Target price is $1.35 Current Price is $1.44 Difference: minus $0.085 (current price is over target).
If AMP meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.43, suggesting downside of -0.5%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 5.50 cents and EPS of 9.10 cents.
At the last closing share price the estimated dividend yield is 3.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.77.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.6, implying annual growth of 1106.3%.
Current consensus DPS estimate is 4.2, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 18.9.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 7.50 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 5.23%.
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 9.9, implying annual growth of 30.3%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 3.8%.
Current consensus EPS estimate suggests the PER is 14.5.
Market Sentiment: 0.0
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: $42.18
Goldman Sachs rates ((ARB)) as Neutral (3) -
ARB Corp's AGM trading update revealed a weaker start to sales for FY25, Goldman Sachs observes, at 6.5%, which is below consensus and the broker's forecasts.
Australian aftermarket's 5.5% growth was below expectations and OEM sales' decline of -2% was well below the analyst's estimate of 12.1% growth and consensus at 13% growth.
Net profit for 1Q25 was also down year-on-year from impacts in labour, transaction costs and investments.
The stock is Neutral rated with a $40 target price.
This report was published on October 17, 2024.
Target price is $40.00 Current Price is $42.18 Difference: minus $2.18 (current price is over target).
If ARB meets the Goldman Sachs target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $43.30, suggesting upside of 2.7%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 140.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.13.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 31.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 EPS of 153.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.57.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 27.7.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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