Daily Market Reports | Nov 21 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 CMM (2) DUG ELD GNE HLS ILU KMD (2) ORI PDN PLT RDY RHC RIC SHA SHL STO TNE
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $15.33
Jarden rates ((ALQ)) as Downgrade to Neutral from Overweight (3) -
ALS Ltd's 1H25 core profit of $152m came in slightly ahead of consensus at $150m, driven by stable performance in Life Sciences and resilience in Commodities margins despite volatile geochemistry sampling flows, notes Jarden.
Commodities division EBIT margins remained robust at 31%, driven by larger miners contributing 70-75% of testing flows, though the broker observes sampling flow growth declined by -0.5% year-on-year.
Life Sciences achieved growth through organic expansion and contributions from recent M&A (including Nuvisan), highlights the analyst.
Jarden downgrades ALS Ltd to Neutral from Overweight, citing limited near-term earnings catalysts, and increases the target price to $14.40 from $14.25.
This report was published on November 20, 2024.
Target price is $14.40 Current Price is $15.33 Difference: minus $0.93 (current price is over target).
If ALQ meets the Jarden target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.35, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 37.40 cents and EPS of 63.50 cents.
At the last closing share price the estimated dividend yield is 2.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.4, implying annual growth of 2274.5%.
Current consensus DPS estimate is 38.0, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 24.2.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 42.50 cents and EPS of 71.80 cents.
At the last closing share price the estimated dividend yield is 2.77%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 72.4, implying annual growth of 14.2%.
Current consensus DPS estimate is 43.7, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 21.2.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CMM CAPRICORN METALS LIMITED
Gold & Silver - Overnight Price: $6.44
Canaccord Genuity rates ((CMM)) as Buy (1) -
Capricorn Metals announced a 41% increase in reserves at the Mt Gibson Gold Project to 2.6moz, extending the life of mine (LOM) to 17 years, notes Canaccord Genuity.
Production is projected at 150koz per annum over the first 15 years at a cost (AISC) of between $1,650-$1,750/oz, with total pre-production capex of -$343m.
The updated pre-feasibility study includes higher-grade reserves and a streamlined construction timeline targeting first production in the September quarter of 2026, explain the analysts
Canaccord Genuity raises its target price to $8.30 from $8.10 and retains a Buy rating, citing an extended mine life and improved production profile.
This report was published on November 20, 2024.
Target price is $8.30 Current Price is $6.44 Difference: $1.86
If CMM meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $7.31, suggesting upside of 13.6%(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 39.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.51.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 33.5, implying annual growth of 44.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.2.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 35.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 32.6, implying annual growth of -2.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.8.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((CMM)) as Buy (1) -
Capricorn Metals announced a 41% increase in reserves at the Mt Gibson Gold Project to 2.59moz, extending the life of mine (LOM) to 17.5 years, notes Jarden.
Production is expected to average 150koz per annum over the first 15 years at costs (AISC) of $1,650-$1,750/oz, note the analysts, with a focus on optimising existing pits and evaluating underground development potential.
Capital requirements include -$83m in pre-production capex and -$75m for non-sustaining growth, highlights the broker, while recent metallurgical work confirmed recoveries of 91.8%.
Jarden raises the target price to $6.96 from $6.93, citing potential upside from exploration and expedited development timelines, and retains a Buy rating.
This report was published on November 18, 2024.
Target price is $6.96 Current Price is $6.44 Difference: $0.52
If CMM meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $7.31, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 34.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 33.5, implying annual growth of 44.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.2.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 6.00 cents and EPS of 29.20 cents.
At the last closing share price the estimated dividend yield is 0.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 32.6, implying annual growth of -2.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.8.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DUG DUG TECHNOLOGY LIMITED
Cloud services - Overnight Price: $1.60
Canaccord Genuity rates ((DUG)) as Buy (1) -
DUG Technology delivered FY24 revenue growth of 29% year-on-year and anticipates further growth of 11% in FY25, supported by a record sales pipeline, notes Canaccord Genuity.
The companys Elastic MP-FWI technology has gained validation from leading players like Chevron and Shell, positioning it as a key tool for seismic reservoir management, suggests the analyst.
While quarterly performance has been volatile, management aims to achieve $8m for earnings EBITDA per quarter in 2H25 with a margin near 36%, highlights the broker, driven by pipeline conversion and increased demand for Elastic MP-FWI.
Canaccord retains a Buy rating and a $3.20 target price, viewing the recent share price sell-off as overdone.
This report was published on November 20, 2024.
Target price is $3.20 Current Price is $1.60 Difference: $1.595
If DUG meets the Canaccord Genuity target it will return approximately 99% (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 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 160.50.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 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 40.13.
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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