Daily Market Reports | Oct 25 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 BGL DSE GNE MGH MHJ NCK (2) OCC S32 SFX SMR VSL
AD8 AUDINATE GROUP LIMITED
Hardware & Equipment - Overnight Price: $8.62
Canaccord Genuity rates ((AD8)) as Buy (1) -
Canaccord Genuity lowers its target for Audinate Group to $10.50 from $12.00 following a 1Q AGM trading update showing a -40% fall in gross profit. Management also lowered growth expectations for FY25 as headwinds are expected to continue into 2Q25.
Management noted the ongoing unwind of its order book and softer-than-expected reordering patterns. The company is expecting "a moderately stronger second half, though no quantitative figures were provided, highlight the analysts.
After the broker implies the Q1 performance into Q2, the resultant 1H gross profit misses Canaccord's forecast by -35%.
The Buy rating is maintained.
This report was published on October 23, 2024.
Target price is $10.50 Current Price is $8.62 Difference: $1.88
If AD8 meets the Canaccord Genuity target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $11.58, suggesting upside of 34.3%(ex-dividends)
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 4.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 215.50.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:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 95.78.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 156.7.
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: $10.89
Wilsons rates ((AOV)) as Overweight (1) -
Wilsons assesses a broadly neutral AGM trading update by Amotiv. The target edges up to $12.71 from $12.69.
The broker highlights 'Wear & repair' segments remain resilient, partly offset by softness in New Zealand, and the Caravan/RV and 4WD/SUV segments.
Management announced a share buyback of up to 5% of shares on issue, which is expected to commence from November 6.
Wilsons suggests investors are yet to reward management's efforts to rapidly deleverage the balance sheet with a higher share price. The Overweight rating is retained.
This report was published on October 22, 2024.
Target price is $12.71 Current Price is $10.89 Difference: $1.82
If AOV meets the Wilsons target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $13.02, suggesting upside of 19.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 43.00 cents and EPS of 89.60 cents.
At the last closing share price the estimated dividend yield is 3.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 85.8, implying annual growth of 21.4%.
Current consensus DPS estimate is 44.4, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 12.7.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 47.00 cents and EPS of 98.40 cents.
At the last closing share price the estimated dividend yield is 4.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 94.9, implying annual growth of 10.6%.
Current consensus DPS estimate is 46.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 11.5.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BGL BELLEVUE GOLD LIMITED
Gold & Silver - Overnight Price: $1.64
Goldman Sachs rates ((BGL)) as Buy (1) -
Mill throughput offset softer grades in the 1Q for Bellevue Gold, notes Goldman Sachs, and gold production aligned with forecasts by the broker and consensus.
The broker expects the significantly improved development rates in the 1Q at the Bellevue mine will be maintained.
Management reiterated FY25 production guidance of between 165koz-180koz. Also, the proposed debt amendment should be concluded by the end of October leaving around $100m of debt with no repayments due until 2027, explained management.
The Buy rating and $1.80 target are retained.
This report was published on October 22, 2024.
Target price is $1.80 Current Price is $1.64 Difference: $0.16
If BGL meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $1.63, suggesting downside of -0.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 10.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.1, implying annual growth of 70.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 14.8.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 0.00 cents and EPS of 15.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.93.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.6, implying annual growth of 22.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 12.1.
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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