Daily Market Reports | Nov 07 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)
ALQ BTR CIA CKF CPU DMP (3) FLT IFM MFG PYC RXL TNE TPW TRE WBC XRO
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $14.71
Jarden rates ((ALQ)) as Overweight (2) -
Jarden maintains an Overweight rating on ALS Ltd with a target price of $14.25, reflecting positive expectations for 1H25 results, despite moderate growth constraints.
The broker anticipates net profit of $148m, marginally above consensus estimates, supported by stability in the geochemistry segment within the commodities division.
Jarden will be focused on the results from the life sciences division, where integration of recent acquisitions like York and Wessling could impact profitability.
This report was published on November 4, 2024.
Target price is $14.25 Current Price is $14.71 Difference: minus $0.46 (current price is over target).
If ALQ meets the Jarden target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $15.43, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 36.60 cents and EPS of 63.90 cents.
At the last closing share price the estimated dividend yield is 2.49%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 64.3, implying annual growth of 2308.2%.
Current consensus DPS estimate is 38.7, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.9.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 42.40 cents and EPS of 71.70 cents.
At the last closing share price the estimated dividend yield is 2.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 72.5, implying annual growth of 12.8%.
Current consensus DPS estimate is 43.6, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 20.3.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BTR BRIGHTSTAR RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.03
Canaccord Genuity rates ((BTR)) as Initiation of coverage with Speculative Buy (1) -
Canaccord Genuity initiates coverage of Brightstar Resources with a Speculative Buy rating and a target price of 6c.
The broker highlights Brightstar as an emerging gold producer with 100% ownership of the Menzies, Laverton, and Sandstone Gold Projects in Western Australia.
Canaccord expects early but valuable cash flow in FY25 from the Second Fortune mine at the Laverton hub, with production forecast to reach 15koz at costs (AISC) of $2,441/oz.
The analysts anticipate significant production growth in FY26-28 as additional deposits come online, with output expected to climb to 175koz annually by FY28.
Canaccord notes potential M&A as Brightstar advances regional consolidation to support its growth strategy and enhance resource quality.
This report was published on November 7, 2024.
Target price is $0.06 Current Price is $0.03 Difference: $0.035
If BTR meets the Canaccord Genuity target it will return approximately 140% (excluding dividends, fees and charges).
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CIA CHAMPION IRON LIMITED
Iron Ore - Overnight Price: $5.96
Goldman Sachs rates ((CIA)) as Buy (1) -
Champion Iron's 2Q25 results aligned with Goldman Sachs EBITDA estimate of CA$75m but fell short of consensus due to weaker iron ore premiums and provisional pricing adjustments.
The broker highlights the company's long-term potential, noting a 15Mtpa nameplate at Bloom Lake, with plans to expand to 18Mtpa, and high-grade Direct Reduced Pellet Feed production expected by 2H25.
Goldman Sachs believes the upcoming Kami project is a key growth driver for Champion Iron, potentially adding 9Mtpa of high-grade iron ore.
Goldman Sachs maintains a Buy rating with a target price of $7.50, supported by valuation and growth prospects at the Bloom Lake mine, the analyst states.
This report was published on November 4, 2024.
Target price is $7.50 Current Price is $5.96 Difference: $1.54
If CIA meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 33.24 cents and EPS of 34.35 cents.
At the last closing share price the estimated dividend yield is 5.58%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.35.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 22.16 cents and EPS of 54.29 cents.
At the last closing share price the estimated dividend yield is 3.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.98.
This company reports in CAD. 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
CKF COLLINS FOODS LIMITED
Food, Beverages & Tobacco - Overnight Price: $8.51
Wilsons rates ((CKF)) as Overweight (1) -
Wilsons finds Yum! Brands' recent 3Q24 results offer a broadly neutral outlook for Collins Foods, with sales trends aligning with Collins August trading update.
The broker notes KFC Australias same-store sales growth (SSS) appears stable, slightly outperforming Yum's Australia KFC network, while inflationary pressures mean SSS growth must comfortably enter positive territory to support margin recovery.
A modest sales growth slowdown for KFC Europe is noted, aligning with the broker's previous expectations.
The analysts make no forecast adjustments, with KFC Australias SSS growth projected at -0.2% in 1H25, improving to 1.5% in 2H25.
Wilsons retains an Overweight rating with a 12-month target price of $11.79.
This report was published on November 6, 2024.
Target price is $11.79 Current Price is $8.51 Difference: $3.28
If CKF meets the Wilsons target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $9.46, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in May.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 28.00 cents and EPS of 43.10 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.74.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 45.9, implying annual growth of -4.5%.
Current consensus DPS estimate is 24.1, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 18.6.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 34.00 cents and EPS of 61.30 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 58.4, implying annual growth of 27.2%.
Current consensus DPS estimate is 30.8, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 14.6.
Market Sentiment: 0.6
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