Daily Market Reports | Jan 15 2025
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)
AAR APE ASX DXB EMR GT1 IAG MFG QBE WAF
AAR ASTRAL RESOURCES NL
Gold & Silver - Overnight Price: $0.14
Canaccord Genuity rates ((AAR)) as Buy (1) -
Astral Resources took a 20% stake in Maximus Resources ((MXR)) and launched a takeover bid for the balance. If successful, Canaccord Genuity notes the transaction would create a company with $210m market capitalisation.
The broker comments Astral's September study showed its Tailings storage facility, plant and waste dump were constrained by tenement footprint.
A transaction with Maximus Resources will give adjacent tenements, offering potential to free up mine design and increase efficiency, according to the broker. The increased landholding would also offer potential upside to further optimise the Theia orebody, the broker adds.
Speculative Buy rating stays and target price is unchanged at $0.39.
This report was published on December 30, 2024.
Target price is $0.39 Current Price is $0.14 Difference: $0.255
If AAR meets the Canaccord Genuity target it will return approximately 189% (excluding dividends, fees and charges).
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: $11.82
Canaccord Genuity rates ((APE)) as Hold (3) -
Canaccord Genuity notes 2024 was a record for Australian vehicle sales, up 1.6%, but the rate of growth slowed in the second half and on a sequential basis was down -4.5% versus the first half.
The broker believes Eagers Automotive will maintain a better margin than peers but will still be impacted by industry-wide movements. The broker has a below consensus forecast for the company and is comfortable retaining it given its view there will likely be negative earnings revision in February's result release.
On that basis, the broker has retained the Hold rating and $11 target price.
This report was published on January 8, 2025.
Target price is $11.00 Current Price is $11.82 Difference: minus $0.82 (current price is over target).
If APE meets the Canaccord Genuity target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $11.87, suggesting upside of 0.4%(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 5.08%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.21.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 5.5%.
Current consensus EPS estimate suggests the PER is 12.8.
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 4.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.57.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 5.5%.
Current consensus EPS estimate suggests the PER is 12.6.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASX ASX LIMITED
Wealth Management & Investments - Overnight Price: $64.49
Goldman Sachs rates ((ASX)) as Sell (5) -
Ahead of ASX's 1H results on February 13, Goldman Sachs has made earnings changes to reflect the company's operational trends which it notes are positive, outside of listings.
The broker notes reset risk is low at the result but remains cautious on capex risks and its implication for free cash. The broker observes valuation is at 25.6x FY25 or 24.9x FY26 -- broadly in line with global peers.
The bropker comments key areas of focus ahead of results are divisional operating trends, expense trends, fee/pricing changes, equity investments and regulatory risk.
The target price remains unchanged at $59..5 and the rating at Sell.
This report was published on January 8, 2025.
Target price is $59.50 Current Price is $64.49 Difference: minus $4.99 (current price is over target).
If ASX meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $63.87, suggesting downside of -1.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 217.00 cents and EPS of 256.00 cents.
At the last closing share price the estimated dividend yield is 3.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.19.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 255.5, implying annual growth of 4.4%.
Current consensus DPS estimate is 214.6, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 25.2.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 220.00 cents and EPS of 251.00 cents.
At the last closing share price the estimated dividend yield is 3.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 263.2, implying annual growth of 3.0%.
Current consensus DPS estimate is 220.3, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 24.5.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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