Daily Market Reports | 10:30 AM
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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ACE ALC ASG AX1 BBT BMN BRE CMM IGO (2) KAR KCN LRK MDR OPT PYC SFR TWE VAU
ACE ACUSENSUS LIMITED
Transportation & Logistics - Overnight Price: $1.25
Canaccord Genuity rates ((ACE)) as Buy (1) -
Second quarter revenue for Acusensus reached $14.6m, up 4% quarter-on-quarter and 16% year-on-year, highlights Canaccord Genuity.
The broker explains growth was driven by new contract wins in South Australia and overseas, as well as key contract extensions in QLD and NSW, alongside inflation-linked price rises.
Total contracted value surged 58% in H1 to $325m, note the analysts, marking the strongest incremental increase in the companys history.
Management is accelerating product innovation, launching its road worker safety technology with Fulton Hogan, and expanding in high-growth regions in the UK/US, highlights Canaccord.
The Buy rating and $1.50 target are unchanged.
This report was published on January 30, 2025.
Target price is $1.50 Current Price is $1.25 Difference: $0.25
If ACE meets the Canaccord Genuity target it will return approximately 20% (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 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 178.57.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 416.67.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALC ALCIDION GROUP LIMITED
Healthcare services - Overnight Price: $0.07
Canaccord Genuity rates ((ALC)) as Buy (1) -
Alcidion Groups 2Q revealed new total contract value (TCV) sales of $13.1m, a 152% increase quarter-on-quarter, with $8.2m from new customer wins.
Contracted FY25 revenue now sits at $30.8m, excluding the large North Cumbria Integrated Care NHS Foundation Trust contract, which is expected to contribute before year-end.
Operating cash flow outflow improved to -$259,000 from -$3.9m in the prior quarter, reflecting the benefits of cost reductions, lower staff costs, and the completion of restructuring expenses, highlight the analysts.
Management maintains FY25 positive earnings (EBITDA) guidance, requiring a $36m revenue run-rate, which the broker expects will be achieved through additional contract signings.
Canaccord retains a Buy rating with a target price of 9c.
This report was published on January 30, 2025.
Target price is $0.09 Current Price is $0.07 Difference: $0.024
If ALC meets the Canaccord Genuity target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.00.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ASG AUTOSPORTS GROUP LIMITED
Automobiles & Components - Overnight Price: $1.67
Moelis rates ((ASG)) as Hold (3) -
Autosports Group downgraded 1H25 guidance, citing challenging trading conditions in November and December. The company now expects normalised profit before tax of $20m, down -29% on prior guidance of $28m and -64% year on year.
Moelis has lowered FY25-27 EPS by -9% to -22% reflecting a weaker revenue outlook and slower gross margin recovery.
Target price lowered to $1.67 from $2.0. Rating retained at Hold.
This report was published on February 2, 2025.
Target price is $1.67 Current Price is $1.67 Difference: $0
If ASG meets the Moelis target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $1.97, suggesting upside of 17.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 9.20 cents and EPS of 16.80 cents.
At the last closing share price the estimated dividend yield is 5.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 16.6, implying annual growth of -45.2%.
Current consensus DPS estimate is 11.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 10.1.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 10.80 cents and EPS of 19.60 cents.
At the last closing share price the estimated dividend yield is 6.47%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 25.4, implying annual growth of 53.0%.
Current consensus DPS estimate is 17.3, implying a prospective dividend yield of 10.4%.
Current consensus EPS estimate suggests the PER is 6.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AX1 ACCENT GROUP LIMITED
Apparel & Footwear - Overnight Price: $2.12
Petra Capital rates ((AX1)) as Downgrade to Hold from Buy (3) -
Accent Group's trading update flagged a slowing in retail sales in the six weeks to Dec 29, rising just 1.8% amid ongoing promotional backdrop, compared with 1H25 like-for-like growth of 2.9%.
Gross margin is expected to be down -100bps versus -70bps at the time of Nov 21 AGM.
Petra Capital has extrapolated the softness in December into 2H25 estimates. These negative revisions are partially offset by model roll-forward, resulting in a cut in target price to $2.28 from $2.35.
The broker now views the stock as trading at fair-value at 17.6x estimated FY25 PE and downgraded the rating to Hold from Buy.
This report was published on January 30, 2025.
Target price is $2.28 Current Price is $2.12 Difference: $0.16
If AX1 meets the Petra Capital target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.53, suggesting upside of 19.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 12.30 cents and EPS of 12.50 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.96.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.3, implying annual growth of 25.4%.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 15.9.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 12.60 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 5.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.5, implying annual growth of 16.5%.
Current consensus DPS estimate is 14.3, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 13.7.
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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