Daily Market Reports | Dec 05 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)
AIZ AQZ BHP BVS CKF GOR IAG MTS (2) NST (2)
AIZ AIR NEW ZEALAND LIMITED
Transportation & Logistics - Overnight Price: $0.51
Jarden rates ((AIZ)) as Neutral (3) -
At its recent investor day, Air New Zealand presented various initiatives aimed at driving earnings improvements by FY28.
Revenue initiatives are centered around capacity growth and premiumisation of the long-haul fleet, Jarden notes, with premium seating lifting 30% over FY19 levels and a 10-15% revenue per available seat kilometre increase expected on North American routes.
On the cost side, the airline is seeking to save around -NZ$100m with targeted savings in labour and overheads. Jarden's updated forecasts reflect a modestly more positive earnings outlook with downside risk to capacity offset by lower fuel, labour and interest costs.
Target rises to NZ61c from NZ57c, Neutral retained.
This report was published on December 4, 2024.
Current Price is $0.51. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 1.84 cents and EPS of 2.94 cents.
At the last closing share price the estimated dividend yield is 3.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.35.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 2.94 cents and EPS of 4.87 cents.
At the last closing share price the estimated dividend yield is 5.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.48.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AQZ ALLIANCE AVIATION SERVICES LIMITED
Transportation & Logistics - Overnight Price: $2.71
Wilsons rates ((AQZ)) as Overweight (1) -
Ahead of Alliance Aviation Services completing its fleet expansion by early FY27, analysts at Wilsons have gone through their modeling yet again and the exercise has strengthened their confidence in projected trajectory for cash flows.
As the fleet expansion should result in strong earnings growth, the broker's investment thesis has been re-confirmed.
Price target lifts to $4.32 from $4.22. Overweight.
This report was published on December 5, 2024.
Target price is $4.32 Current Price is $2.71 Difference: $1.61
If AQZ meets the Wilsons target it will return approximately 59% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 40.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.77.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 6.80 cents and EPS of 44.20 cents.
At the last closing share price the estimated dividend yield is 2.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.13.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BHP BHP GROUP LIMITED
Bulks - Overnight Price: $41.05
Goldman Sachs rates ((BHP)) as Buy (1) -
Goldman Sachs attended BHP Groups investor tour of the Escondida and Spence copper mines in Chile where ten projects were outlined costing potentially up to -US$15bn to offset -400kt of depletion.
The broker does not think higher Chilean capex and the announced Filo Del Sol and Josemaria acquisitions preclude BHP from looking at further inorganic copper opportunities including producing copper assets.
Goldman notes BHP has an attractive valuation, but at a premium to Rio Tinto ((RIO)), with modest free cash flow below Rio Tinto. The broker remains bullish on copper. Buy retained, target $47.40.
This report was published on December 3, 2024.
Target price is $47.40 Current Price is $41.05 Difference: $6.35
If BHP meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $45.46, suggesting upside of 12.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 149.37 cents and EPS of 300.24 cents.
At the last closing share price the estimated dividend yield is 3.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 336.5, implying annual growth of N/A.
Current consensus DPS estimate is 182.4, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 12.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 162.95 cents and EPS of 325.89 cents.
At the last closing share price the estimated dividend yield is 3.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.60.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 352.0, implying annual growth of 4.6%.
Current consensus DPS estimate is 191.4, implying a prospective dividend yield of 4.7%.
Current consensus EPS estimate suggests the PER is 11.5.
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
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