Daily Market Reports | Nov 12 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
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)
AGE APE AVA BMN BRG (2) BSL CEH CKF CNB COE COI CRD CVN DHG DMP DRE DUR GLL HVN JBH JHX LNW LOV NAB NEC NEU (2) NHF NXG PER PFP PSC SDF SUN (2) SWM TLX
AGE ALLIGATOR ENERGY LIMITED
Uranium - Overnight Price: $0.04
Petra Capital rates ((AGE)) as Buy (1) -
Petra Capital highlights ASX uranium equities are down year-to-date compared to the U308 contract price which has risen 18% on low volumes.
The broker believes uranium stocks have the potential to rally with any uranium spot price rises which is believed to be most likely given term contracting volumes need to play catch up.
In terms of new projects, Petra Capital likes Alligator Energy and Aura Energy ((AGE)) with the former continuing to develop its Samphire project in SA.
Buy rated with an 10c target price.
This report was published on August 8, 2024.
Target price is $0.10 Current Price is $0.04 Difference: $0.06
If AGE meets the Petra Capital target it will return approximately 150% (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
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $11.51
Canaccord Genuity rates ((APE)) as Hold (3) -
Canaccord Genuity highlights October vehicle sales in Australia fell by -6.4% year-on-year, impacted by an uneven order book across brands, with Toyota, Ford, and Mitsubishi showing growth while Mazda, Hyundai, MG and Subaru are in decline.
The broker expresses cautious sentiment due to near-term cyclicality affecting Eagers Automotive's performance, despite its leading market position.
Hold rating. Target $11 unchanged.
This report was published on November 7, 2024.
Target price is $11.00 Current Price is $11.51 Difference: minus $0.51 (current price is over target).
If APE meets the Canaccord Genuity target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.87, suggesting upside of 3.1%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 60.00 cents and EPS of 96.80 cents.
At the last closing share price the estimated dividend yield is 5.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 92.4, implying annual growth of -16.6%.
Current consensus DPS estimate is 65.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.5.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 57.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 4.95%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.21.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 94.0, implying annual growth of 1.7%.
Current consensus DPS estimate is 66.4, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 12.2.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AVA AVA RISK GROUP LIMITED
Hardware & Equipment - Overnight Price: $0.14
Canaccord Genuity rates ((AVA)) as Buy (1) -
Ava Risk's 1Q25 update showed order intake of $8.9m, sustaining a strong backlog and supporting FY25 revenue guidance of $42.7$55.2m, implying a substantially stronger second half, Canaccord Genuity observes.
The analyst notes Detect remains the key revenue driver, estimated to contribute $29m for FY25, a 58% increase year-on-year. The pipeline for Direct applications is highlighted by the broker as over $100m in opportunities.
Management attributes AVAs growth to improved processes, product offerings, and reduced competition. Buy rating retained with 30c target price.
This report was published on November 6, 2024.
Target price is $0.30 Current Price is $0.14 Difference: $0.16
If AVA meets the Canaccord Genuity target it will return approximately 114% (excluding dividends, fees and charges).
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 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.77.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.85 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 6.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.52.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BMN BANNERMAN ENERGY LIMITED
Uranium - Overnight Price: $2.85
Petra Capital rates ((BMN)) as Buy (1) -
Petra Capital is tactically upbeat on Bannerman Energy and believes the stock is fundamentally cheaper than its Namibian developer peer, Deep Yellow (DYL).
The Etango project has received its mining license, with all necessary permits in place and early works underway. A final investment decision is extended into 2025.
The company is a tactical preference for the broker, who sees opportunities in ASX uranium stocks, which have under-performed North American peers like Cameco.
Buy rated with a $4.51 target price.
This report was published on November 8, 2024.
Target price is $4.51 Current Price is $2.85 Difference: $1.66
If BMN meets the Petra Capital target it will return approximately 58% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 285.00.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 1425.00.
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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