Daily Market Reports | Oct 30 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.
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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)
ADH (2) ARX BLX BSA CAR CSL CTD EVN FEX FLT INR KAR MEI MGH NST NWS NXS PXA REA RMD RRL SEK STX SYA (2) TCL VAU
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $2.61
Canaccord Genuity rates ((ADH)) as Buy (1) -
Adairs' trading update pleased Canaccord Genuity, with a particularly strong sales performance the highlight, complemented by gross margins pacing ahead of a year ago despite headwinds from FX and initial impacts from higher freight costs.
The broker remains optimistic on the near-term outlook, while cautioning that we are entering peak retail trading at year-end. Canaccord has taken the view that management's initiatives to turn around Adairs and Mocka will outweigh continuing cost of living pressures.
The broker is nonetheless cautious on Focus forecasts given weak recent trading. In the medium term, Canaccord sees material top-line optionality and room for operating leverage. Target rises to $2.80 from $2.50, Buy retained.
This report was published on October 25, 2024.
Target price is $2.80 Current Price is $2.61 Difference: $0.19
If ADH meets the Canaccord Genuity target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $2.31, suggesting downside of -11.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 13.00 cents and EPS of 22.00 cents.
At the last closing share price the estimated dividend yield is 4.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.3, implying annual growth of -20.2%.
Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 18.3.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 16.00 cents and EPS of 25.00 cents.
At the last closing share price the estimated dividend yield is 6.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.8, implying annual growth of 24.5%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.7.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((ADH)) as Market Weight (3) -
Wilsons notes Adairs reported strong sales growth of 16% year-on-year for weeks 9-16 of FY25 and stable gross margins, up 50bps.
Focus on Furniture experienced a decline in sales -4% on the previous corresponding period while Mocka showed recovery with growth of 6% in Australia.
The broker's EBIT forecasts are revised up for FY25 and FY26 by 14% and 10%, respectively, due to improved cost discipline and increased sales
Target price rises to $2.40 from $1.95 on the back of the results. Market weight retained,
This report was published on October 24, 2024.
Target price is $2.40 Current Price is $2.61 Difference: minus $0.21 (current price is over target).
If ADH meets the Wilsons target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $2.31, suggesting downside of -11.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 15.50 cents and EPS of 22.60 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.55.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.3, implying annual growth of -20.2%.
Current consensus DPS estimate is 12.7, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 18.3.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 19.50 cents and EPS of 28.90 cents.
At the last closing share price the estimated dividend yield is 7.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 17.8, implying annual growth of 24.5%.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 14.7.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARX AROA BIOSURGERY LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.59
Canaccord Genuity rates ((ARX)) as Buy (1) -
Aroa Biosurgery reported its 2Q25 result in line with Canaccord Genuity's expectations. Myriad sales appear to be progressing well with the combination of a maturing salesforce, focus on trauma/higher value procedures and commitment to generating validating
clinical data beginning to play out.
Delays to TELA Bio's inventory work-through will likely be behind us, the broker suggests, and while 2Q was relatively weak on some one-off impacts, the longer-term structural growth story continues to impress with 2024 guidance of 27-31% growth maintained.
Guidance to a maiden profit in FY25 is maintained, with Canaccord expecting operating leverage and scale to come through in FY26. Buy and $1.00 target retained.
This report was published on October 24, 2024.
Target price is $1.00 Current Price is $0.59 Difference: $0.405
If ARX meets the Canaccord Genuity target it will return approximately 68% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 161.68.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.93 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.80.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BLX BEACON LIGHTING GROUP LIMITED
Furniture & Renovation - Overnight Price: $2.90
Jarden rates ((BLX)) as Overweight (2) -
Post Beacon Lighting's AGM update, Jarden sees stable trade growth and a potential retail recovery in FY26.
Management highlighted robust momentum in the trade segment, offsetting softness in retail, with trade expected to achieve a 16.5% compound average growth rate through FY28.
Jarden's EPS forecast is lowered slighly for FY25 with FY26-27 estimates revised up by around 1-2%.
The gross margin forecast remains stable at 68%, supported by cost control and new product releases.
Target rises to $3 from $2.70, Overweight retained.
This report was published on October 22, 2024.
Target price is $3.00 Current Price is $2.90 Difference: $0.1
If BLX meets the Jarden target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $3.21, suggesting upside of 10.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 9.90 cents and EPS of 13.80 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.01.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.9, implying annual growth of 4.1%.
Current consensus DPS estimate is 8.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 20.9.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 11.00 cents and EPS of 16.20 cents.
At the last closing share price the estimated dividend yield is 3.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.90.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.1, implying annual growth of 15.8%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 18.0.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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