Daily Market Reports | Oct 28 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)
29M ACE AD8 FBU ILU (2) IPD MAC MEI MHJ PNI PPS PYC QBE RXL TAH VEA WOR
29M 29METALS LIMITED
Copper - Overnight Price: $0.43
Jarden rates ((29M)) as Underweight (4) -
Jarden highlights 29Metals continues to experience significant cash burn, with -$26m consumed during 3Q24. Despite favourable base metal prices, the company's cash balance dropped to $60m by the end of September, with net debt rising to $147m.
The company is forecasted to have a cash balance of just $30m by the end of 2024, necessitating a liquidity event of $60m to maintain its going-concern status.
Golden Grove generated positive free cash flow ($26m), but Jarden points out the overall production was offset by disappointing developments at Xantho Extended.
The broker has downgraded EBITDA forecasts by -64% for 2024 due to slower XE ramp-up and increased costs. The price target is reduced to $0.30 from $0.33, with an Underweight rating maintained.
This report was published on October 24, 2024.
Target price is $0.30 Current Price is $0.43 Difference: minus $0.135 (current price is over target).
If 29M meets the Jarden target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $0.53, suggesting upside of 21.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 12.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 3.43.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -12.1, 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 N/A.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 72.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -1.1, 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 N/A.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $0.94
Canaccord Genuity rates ((ACE)) as Buy (1) -
Canaccord Genuity highlights Acusensus reported "strong" 1Q25 revenue of $14m, up 17% year-on-year and 10% quarter-on-quarter, tracking ahead of expectations for FY25 revenue growth of 14% to $57m.
The company's revenue growth is driven by long-duration government contracts, the broker explains, with no contract churn and high cross-sell success.
The broker nominates as the domestic highlight for the quarter a $9.4m, 3-year contract with the WA government, which will add $3m per annum in incremental revenue starting in 3Q25.
Internationally, the US business achieved two new long-term contracts and a UK pilot program is underway. The broker maintains a Buy rating and has kept the price target unchanged at $1.30. No material changes were made to financial forecasts.
This report was published on October 23, 2024.
Target price is $1.30 Current Price is $0.94 Difference: $0.355
If ACE meets the Canaccord Genuity target it will return approximately 38% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 67.50.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 105.00.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AD8 AUDINATE GROUP LIMITED
Hardware & Equipment - Overnight Price: $8.59
Canaccord Genuity rates ((AD8)) as Buy (1) -
Audinate held its AGM, where it delivered a 1Q25 trading update showing softer-than-expected performance. Canaccord Genuity highlights gross profit for 1Q25 came in at US$7.2m/A$10.6m, representing a -35-40% reduction year-on-year.
Not surprising, management at the company revised its FY25 expectations downward, citing ongoing headwinds into 2Q25. Full-year gross profit is now expected to be approximately $45m, down from $68m previously.
Cost growth is projected at 7-9% for FY25, with EBITDA only modestly positive. As a result, the broker lowered its price target to $10.50 from $12.00, while maintaining a Buy rating. Financial forecasts for FY25-27 have been significantly reduced.
This report was published on October 22, 2024.
Target price is $10.50 Current Price is $8.59 Difference: $1.91
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 34.7%(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 214.75.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 95.44.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 156.2.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FBU FLETCHER BUILDING LIMITED
Building Products & Services - Overnight Price: $2.82
Goldman Sachs rates ((FBU)) as Neutral (3) -
Fletcher Building provided a weaker-than-expected AGM trading update, Goldman Sachs highlights. The company did not give explicit FY25 EBIT guidance but expects a 1H/2H split of 40/60, compared to prior expectations of 45/55.
Materials and Distribution volumes were down -10-15% year-on-year, with declining revenue trends and a highly competitive market leading to continued margin pressure.
The broker has adjusted its FY25 EBIT forecast downward by -13% and maintained a Neutral rating with the price target unchanged at $2.75. No significant changes were made to financial forecasts.
This report was published on October 23, 2024.
Target price is $2.75 Current Price is $2.82 Difference: minus $0.07 (current price is over target).
If FBU meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.48, suggesting downside of -12.1%(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 14.72 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.7, 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 20.6.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 15.64 cents and EPS of 23.93 cents.
At the last closing share price the estimated dividend yield is 5.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.79.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.1, implying annual growth of 46.7%.
Current consensus DPS estimate is 2.8, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 14.0.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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