Daily Market Reports | Dec 09 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)
ALL APE BRE BRG CKF (3) CNB IAG LOT MAH MEK MGH NXG RIO RUL S32 SDF SFR SPR SSM STK WGX (2) WOR WTC
ALL ARISTOCRAT LEISURE LIMITED
Gaming - Overnight Price: $67.68
Jarden rates ((ALL)) as Neutral (3) -
Aristocrat Leisure outlined its sustainability program, Jarden notes, focused on good governance and responsible business, responsible (safer) play, operational sustainability, climate, people, and community.
The analyst highlights the asset-light/intellectual-heavy business model lends itself to higher risks around responsible gameplay. The targets set by the company are viewed positively.
No change to the Neutral rating or $61 target price. Earnings forecasts remain unchanged.
This report was published on December 5, 2024.
Target price is $61.00 Current Price is $67.68 Difference: minus $6.68 (current price is over target).
If ALL meets the Jarden target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $70.75, suggesting upside of 4.5%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 89.00 cents and EPS of 265.00 cents.
At the last closing share price the estimated dividend yield is 1.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 263.8, implying annual growth of 28.8%.
Current consensus DPS estimate is 92.1, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 25.7.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 94.00 cents and EPS of 281.40 cents.
At the last closing share price the estimated dividend yield is 1.39%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 287.5, implying annual growth of 9.0%.
Current consensus DPS estimate is 95.2, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 23.5.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
APE EAGERS AUTOMOTIVE LIMITED
Automobiles & Components - Overnight Price: $11.34
Canaccord Genuity rates ((APE)) as Hold (3) -
Canaccord Genuity notes Australian vehicle sales were down -9.3% in November. It's actually a solid standalone figure, the broker points out, as the comparables for November and December are very high.
The broker notes we also saw for the first time in over twelve months Toyota not post a positive comparable, with a -2.1% decline, suggesting weakness across the industry.
Canaccord believes BYD sales will provide positive earnings growth for Eagers Automotive in 2H24. Sales numbers continue to improve but the broker highlights a primary driver of this outcome of high growth is the launch of new vehicles on a small installed base.
Hold and $11 target retained.
This report was published on December 4, 2024.
Target price is $11.00 Current Price is $11.34 Difference: minus $0.34 (current price is over target).
If APE meets the Canaccord Genuity target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.87, suggesting upside of 4.7%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 60.00 cents and EPS of 96.80 cents.
At the last closing share price the estimated dividend yield is 5.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.71.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 92.4, implying annual growth of -16.6%.
Current consensus DPS estimate is 64.8, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.3.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 57.00 cents and EPS of 87.10 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.02.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 94.0, implying annual growth of 1.7%.
Current consensus DPS estimate is 65.2, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 12.1.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BRE BRAZILIAN RARE EARTHS LIMITED
Rare Earth Minerals - Overnight Price: $2.36
Petra Capital rates ((BRE)) as Buy (1) -
Despite delivering positive metallurgical test results from the Monte Alto project, shares of Brazilian Rare Earths fell last week, notes Petra Capital, which raises its target price to $5.21 from $4.55. The Buy rating remains unchanged.
The broker highlights lower operating costs, driven by the projects chevkinite mineralogy, enhance its economic appeal and offer potential for downstream processing to add value.
The staged development approach, beginning with monazite concentrate production, followed by direct ship ore, and potentially downstream operations, is described as a flexible and capital-efficient strategy.
The broker anticipates negative earnings (EBITDA) until 2028, when production is expected to begin generating cash flow. The maiden mining study, due mid-2025, is identified as a key catalyst for re-rating.
This report was published on December 5, 2024.
Target price is $5.21 Current Price is $2.36 Difference: $2.85
If BRE meets the Petra Capital target it will return approximately 121% (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 0.00 cents and EPS of minus 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.22.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 56.19.
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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