Daily Market Reports | Nov 28 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)
A2M ARX ASG BKW EML GQG GTK (2) KGN LGL LTR PME PNI PYC QAL QBE SMP SNL TAH WEB WTC
SNL SUPPLY NETWORK LIMITED
Automobiles & Components - Overnight Price: $30.84
Goldman Sachs rates ((SNL)) as Buy (1) -
Goldman Sachs observes 1H25 guidance from Supply Network, implying strong sales growth of 17%, exceeding the historical norm of 14%.
Management guided to 29% growth in net profit, excluding property sales of $400k, the analyst notes.
The broker maintains a Buy rating with a $30.50 target price. No changes to earnings forecasts.
This report was published on November 27, 2024.
Target price is $30.50 Current Price is $30.84 Difference: minus $0.34 (current price is over target).
If SNL meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 64.00 cents and EPS of 91.00 cents.
At the last closing share price the estimated dividend yield is 2.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.89.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 73.00 cents and EPS of 105.00 cents.
At the last closing share price the estimated dividend yield is 2.37%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.37.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TAH TABCORP HOLDINGS LIMITED
Gaming - Overnight Price: $0.54
Jarden rates ((TAH)) as Overweight (2) -
Jarden notes Tabcorp's 3Q update reflected continued softness in wagering turnover, with racing turnover down -8% year-on-year but partially offset by positive yield growth due to improved industry discipline and higher-margin multis.
The broker reduces FY25 EBITDA forecasts by -7.5% to $358m reflecting lower racing turnover and increased operational expenses following the Victorian licence contribution. Media revenues are expected to decline by -5% year-on-year due to weaker racing turnover.
Management is expected to announce organisational restructuring before year-end, which Jarden believes could unlock further value through better cost control and asset utilisation.
The Overweight rating and 65c target are maintained. While Tabcorp's Australian wagering turnover continues to decline, it has turned a corner from a profitability perspective, highlights the broker.
This report was published on November 28, 2024.
Target price is $0.65 Current Price is $0.54 Difference: $0.11
If TAH meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $0.55, suggesting downside of -2.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 1.00 cents and EPS of 1.40 cents.
At the last closing share price the estimated dividend yield is 1.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.57.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 1.4, implying annual growth of N/A.
Current consensus DPS estimate is 0.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 39.3.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 1.80 cents and EPS of 3.10 cents.
At the last closing share price the estimated dividend yield is 3.33%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.8, implying annual growth of 100.0%.
Current consensus DPS estimate is 1.5, implying a prospective dividend yield of 2.7%.
Current consensus EPS estimate suggests the PER is 19.6.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WEB WEB TRAVEL GROUP LIMITED
Travel, Leisure & Tourism - Overnight Price: $4.80
Goldman Sachs rates ((WEB)) as Buy (1) -
Goldman Sachs notes Web Travel reported 1H25 results ahead of expectations, with total transaction value growing 25% year-on-year, though earnings fell by -8%.
The broker believes management explained the factors behind a significant decline in revenue margins for WebBeds, which dropped to 6.6% in 1H25 from 8.1% the previous year.
Management emphasised the scalability of the WebBeds business and expressed confidence in achieving 50% earnings margins from FY26, compared to previous guidance of 46%.
Goldman Sachs reiterates a Buy rating with a higher target price of $7, up from $6.70.
This report was published on November 27, 2024.
Target price is $7.00 Current Price is $4.80 Difference: $2.2
If WEB meets the Goldman Sachs target it will return approximately 46% (excluding dividends, fees and charges).
Current consensus price target is $5.52, suggesting upside of 13.4%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 0.00 cents and EPS of 21.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.86.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.9, implying annual growth of 5.4%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 24.5.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 13.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 2.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.0, implying annual growth of 35.7%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 18.0.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WTC WISETECH GLOBAL LIMITED
Cloud services - Overnight Price: $124.94
Jarden rates ((WTC)) as Neutral (3) -
Jarden revises estimates for WiseTech Global following its FY25 guidance downgrade, citing a delay in the commercial launch of the Container Transport Optimisation module. The delay is expected to shift some revenue and profit into FY26.
Revenue guidance for FY25 is reduced to $1,200-$1,300m, down -6% at the midpoint, while earnings (EBITDA) guidance is cut to $600-$660m, representing a -7% downgrade.
The broker lowers FY25 revenue and EBITDA forecasts by -4% and -7%, respectively, with NPATA reduced by -8% to $381m. FY26 NPATA is also lowered by -4% but still reflects strong growth of 41%.
Jarden raises the target price to $116 from $101, citing long-term earnings upgrades and a lower risk-free rate, while maintaining a Neutral rating.
This report was published on November 25, 2024.
Target price is $116.00 Current Price is $124.94 Difference: minus $8.94 (current price is over target).
If WTC meets the Jarden target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $139.79, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 21.70 cents and EPS of 113.00 cents.
At the last closing share price the estimated dividend yield is 0.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 110.57.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 112.6, implying annual growth of 41.8%.
Current consensus DPS estimate is 22.2, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 112.0.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 30.80 cents and EPS of 158.00 cents.
At the last closing share price the estimated dividend yield is 0.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 79.08.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 161.1, implying annual growth of 43.1%.
Current consensus DPS estimate is 31.9, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 78.3.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.
Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.
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