Daily Market Reports | Nov 20 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)
APZ CPU DSK EVS FLT IPH JHX ORI PEN SMI SPZ XRO (2)
APZ ASPEN GROUP LIMITED
Real Estate - Overnight Price: $2.43
Moelis rates ((APZ)) as Buy (1) -
In mid-October, Aspen Group reported Q1 FY25 underlying EPS of 4.4c, up 20% year-on-year and well above the run-rate needed to achieve prior FY25 guidance of 15.2c, notes Moelis.
Management has now upgraded FY25 guidance for underlying EPS to 16.0c and announced plans to double its production of houses and land sites to 200 in FY25, compared to 97 settlements in FY24, highlights the broker.
Aspen divested -50% of its stake in Eureka Group ((EGH)), reducing its gearing to below 22% from 25.7%, and signalling a shift toward development income, which Moelis views as incrementally positive for long-term value creation.
Moelis raises its target price to $2.73 from $2.53 and retains a Buy rating.
This report was published on November 18, 2024.
Target price is $2.73 Current Price is $2.43 Difference: $0.3
If APZ meets the Moelis target it will return approximately 12% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 9.70 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.19.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 10.20 cents and EPS of 16.60 cents.
At the last closing share price the estimated dividend yield is 4.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.64.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CPU COMPUTERSHARE LIMITED
Diversified Financials - Overnight Price: $30.90
Goldman Sachs rates ((CPU)) as Buy (1) -
As part of Computershares AGM update, management retained FY25 EPS guidance of 126c and margin income guidance of $745m, notes Goldman Sachs.
Operating trends across Issuer Services, Employee Share Plans, and Corporate Trust are tracking favourably, observes the broker, although expense growth remains a potential risk.
A strong balance sheet should support ongoing investments in technology and M&A opportunities, believe the analysts, while also maintaining the capital management strategy.
Goldman makes minor upgrades to its FY25 earnings forecasts, reflecting stronger-than-expected margin income balances, and raises the target price to $31 from $30. Buy rating maintained.
This report was published on November 15, 2024.
Target price is $31.00 Current Price is $30.90 Difference: $0.1
If CPU meets the Goldman Sachs target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $30.47, suggesting downside of -1.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 96.00 cents and EPS of 189.96 cents.
At the last closing share price the estimated dividend yield is 3.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.27.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 192.4, implying annual growth of N/A.
Current consensus DPS estimate is 70.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 16.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 87.00 cents and EPS of 191.47 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 199.5, implying annual growth of 3.7%.
Current consensus DPS estimate is 73.8, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 15.5.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DSK DUSK GROUP LIMITED
Household & Personal Products - Overnight Price: $1.20
Canaccord Genuity rates ((DSK)) as Buy (1) -
Canaccord Genuity views Dusk Groups AGM update positively, noting a 13% year-on-year increase in sales over the first 20 weeks of FY25, with online sales up 41%, representing 8.3% of total sales.
The broker highlights strong membership growth, with loyalty renewals and new sign-ups up 42% year-to-date, accounting for 57% of sales, alongside a successful product-led turnaround strategy.
Management reaffirmed its intention to undertake capital management in 2H FY25, contingent on sustained trading improvements, with the last reported net cash at $21m.
Canaccord Genuity retains a Buy rating and maintains the target price of $1.60, citing upside potential from continued operational momentum.
This report was published on November 18, 2024.
Target price is $1.60 Current Price is $1.20 Difference: $0.4
If DSK meets the Canaccord Genuity target it will return approximately 33% (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 8.00 cents and EPS of 12.00 cents.
At the last closing share price the estimated dividend yield is 6.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.00.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 11.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 9.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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