Daily Market Reports | 11:47 AM
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)
A2M ABB ANG ASG EGH EHL EOS FEX FPR GQG KGN LIC LOV MAH MEK MP1 (2) NXD PYC SDV SLC WTC XRF
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $5.53
Wilsons rates ((A2M)) as Market Weight (3) -
Wilsons notes a better-than-expected trading update from a2 Milk Co, along with the introduction of a dividend policy.
External Mataura Valley Milk ingredient sales and higher global dairy prices supported the results, with English Label and Liquid Milk sales exceeding expectations.
The dividend policy specifies a payout ratio of 60%-80% of net profit, with the first dividend expected in February 2025.
The target price decreases to $5.75 from $5.97, and the Market Weight rating is retained.
This report was published on November 25, 2024.
Target price is $5.75 Current Price is $5.53 Difference: $0.22
If A2M meets the Wilsons target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $6.14, suggesting upside of 9.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 16.08 cents and EPS of 23.16 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.2, implying annual growth of N/A.
Current consensus DPS estimate is 13.9, implying a prospective dividend yield of 2.5%.
Current consensus EPS estimate suggests the PER is 24.2.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 17.46 cents and EPS of 25.36 cents.
At the last closing share price the estimated dividend yield is 3.16%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.81.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 26.1, implying annual growth of 12.5%.
Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 3.0%.
Current consensus EPS estimate suggests the PER is 21.5.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $3.58
Jarden rates ((ABB)) as Initiation of coverage with Overweight (2) -
Jarden initiates coverage on Aussie Broadband with a $4.00 target and Overweight rating, supported by proprietary infrastructure, strong capital management, and premium positioning.
Within the industry, the analysts like challenger telcos as they continue to take market share from the incumbent operators.
The company's premium status (and pricing) in consumer fixed connectivity is underpinned by its proprietary software, owned fibre network, and Tier-1 voice infrastructure, explain the analysts.
Key drivers include NBN Cos Fibre Connect program upgrading approximately 3.1m subscribers to higher-speed tiers and NBN Cos new pricing model encouraging higher-speed adoption, explains Jarden.
The analysts also expects increased service and installation orders from small businesses and new building activity.
The broker forecasts an 18% dividend compound annual growth rate (CAGR) through FY33.
This report was published on November 25, 2024.
Target price is $4.00 Current Price is $3.58 Difference: $0.42
If ABB meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $4.24, suggesting upside of 14.4%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 8.00 cents and EPS of 12.70 cents.
At the last closing share price the estimated dividend yield is 2.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.19.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.3, implying annual growth of 57.1%.
Current consensus DPS estimate is 2.0, implying a prospective dividend yield of 0.5%.
Current consensus EPS estimate suggests the PER is 24.2.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 11.00 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 20.9, implying annual growth of 36.6%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 17.8.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANG AUSTIN ENGINEERING LIMITED
Mining Sector Contracting - Overnight Price: $0.54
Petra Capital rates ((ANG)) as Buy (1) -
Petra Capital reiterates a Buy rating and a target price of 60c for Austin Engineering, noting the recent share price decline presents a buying opportunity.
The broker expects the company to benefit from resilient customer demand, market share gains, and profit margins exceeding the FY26 consensus forecast.
Management reaffirmed FY25 guidance for revenue of $350m and earnings (EBIT) of $50m, anticipating 1H:2H revenue and EBIT splits of 45:55 and 40:60, respectively.
This report was published on November 21, 2024.
Target price is $0.60 Current Price is $0.54 Difference: $0.065
If ANG meets the Petra Capital target it will return approximately 12% (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 2.50 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.92.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 3.50 cents and EPS of 6.90 cents.
At the last closing share price the estimated dividend yield is 6.54%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.75.
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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