Daily Market Reports | Dec 10 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)
ACE ALK ALL APA BGL LOT MPA MTO PNR PTM RKN VUL
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $1.00
Canaccord Genuity rates ((ACE)) as Buy (1) -
Canaccord Genuity highlights a strong start to FY25 for Acusensus, with 17% growth in Q1 revenue to $14m ahead of expectations for 14% growth for the financial year.
The broker notes revenue is being supported by long-term government contracts, with no churn and high cross-sell success rates.
Key domestic wins include a $9.4m three-year contract with the Western Australian government, contributing $3m in annual incremental revenue from the September quarter of 2025, highlight the analysts.
International growth includes new US contracts for distracted driving and speed enforcement, as well as a first long-term UK contract with Devon & Cornwall Police, explains the broker.
Canaccord Genuity retains a Buy rating and a $1.30 target price.
This report was published on October 22, 2024.
Target price is $1.30 Current Price is $1.00 Difference: $0.295
If ACE meets the Canaccord Genuity target it will return approximately 29% (excluding dividends, fees and charges).
The company's fiscal year ends in July.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 71.79.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 111.67.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALK ALKANE RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.49
Petra Capital rates ((ALK)) as Buy (1) -
Petra Capital notes the sale of Rio Tinto's 30% stake in the 5.4mt copper-equivalent Winu project in WA to Sumitomo Metal Mining for US$399m equates to a value of $1.4bn for Alkane Resources' Boda-Kaiser resource.
With the company's market cap at $315m, even accounting for a discount for the lower grade, the market is ascribing little to no value for the asset, the analyst observes.
Boda-Kaiser is lower grade than Winu by -38% but is 10% larger in terms of tonnes.
Petra Capital values Boda-Kaiser at around $150m for a stated resource of 14.7moz gold equivalent.
Buy rated with a $1.04 target price.
This report was published on December 6, 2024.
Target price is $1.04 Current Price is $0.49 Difference: $0.545
If ALK meets the Petra Capital target it will return approximately 110% (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 5.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.53.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of 11.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.16.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALL ARISTOCRAT LEISURE LIMITED
Gaming - Overnight Price: $69.00
Jarden rates ((ALL)) as Neutral (3) -
Jarden points to the second potential loss of a CEO succession candidate for Aristocrat Leisure, with the CEO of land-based gaming, Hector Fernandez, resigning to become CEO of private equity-owned IGT/Everi.
This is the second resignation after Mitchell Bowen, former CEO of Gaming and Interactive Operations, left earlier in 2024.
Jarden does not see the announcement as a reason for a decline in the share price.
No change to the Neutral rating or $61 target price. Earnings forecasts remain unchanged.
This report was published on December 6, 2024.
Target price is $61.00 Current Price is $69.00 Difference: minus $8 (current price is over target).
If ALL meets the Jarden target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $70.75, suggesting upside of 2.5%(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 1.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.04.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 1.3%.
Current consensus EPS estimate suggests the PER is 26.2.
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 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.52.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 24.0.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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