Daily Market Reports | 10:35 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.
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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)
BRG CIA CMM CNB FFM GQG IAG IGO IPD KAR MFG MIN (2) ORG (2) RMD (3)
BRG BREVILLE GROUP LIMITED
Household & Personal Products - Overnight Price: $37.40
Goldman Sachs rates ((BRG)) as Buy (1) -
On the back of US President Trump signing executive orders to impose additional 10% tariffs on China imports to the US effective Feb 4, Goldman Sachs performed an initial assessment of its impact on Breville Group.
The company will continue to move 120V production out of China to Mexico, Indonesia and Cambodia. The broker calculates this remains a more cost-efficient alternative even after accounting for an additional 10% import tariff into China and a 25% tariff into Mexico.
The broker estimates retail prices would increase around 4-5%, though the company has indicated it is looking to work through a more nuanced operating plan together with suppliers.
Overall, the broker expects no material impact on FY25 forecasts but highlights FY26 remains less certain. Target price $40.90. Buy rating remains.
This report was published on February 3, 2025.
Target price is $40.90 Current Price is $37.40 Difference: $3.5
If BRG meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $34.56, suggesting downside of -7.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 36.00 cents and EPS of 94.00 cents.
At the last closing share price the estimated dividend yield is 0.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.79.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 93.6, implying annual growth of 13.2%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 40.0.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 43.00 cents and EPS of 111.00 cents.
At the last closing share price the estimated dividend yield is 1.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 106.9, implying annual growth of 14.2%.
Current consensus DPS estimate is 42.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 35.0.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CIA CHAMPION IRON LIMITED
Iron Ore - Overnight Price: $5.28
Jarden rates ((CIA)) as Overweight (2) -
Jarden notes Champion Iron posted an improved operational result in the December quarter, with both production and sales beating consensus and its estimate, despite the impact on sales of rail load-out failure in early December.
The highlight for the broker was the DRPF project continuing on time and budget for FY25 second quarter commissioning.
The broker noted an increase to new debt with new equipment financing liability of CA$70m introduced in the quarter relating to the new rail cars (2034 maturity), whilst a further CA$70m was drawn from the revolver.
The addition of new debt and leases resulted in net debt of CA$620m on December 31.
Target price rises to $7.34 from $7.26 on higher commodity prices short term plus lower forex, partly offset by a higher discount rate and a notable increase to net debt.
Overweight rating stays.
This report was published on January 31, 2025.
Target price is $7.34 Current Price is $5.28 Difference: $2.06
If CIA meets the Jarden target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 11.05 cents and EPS of 35.37 cents.
At the last closing share price the estimated dividend yield is 2.09%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.93.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 15.48 cents and EPS of 50.29 cents.
At the last closing share price the estimated dividend yield is 2.93%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.50.
This company reports in CAD. 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
CMM CAPRICORN METALS LIMITED
Gold & Silver - Overnight Price: $7.91
Jarden rates ((CMM)) as Buy (1) -
Capricorn Metals' December quarter cost of $1,490/oz came in slightly higher than Jarden's estimate of $1,477/oz, but was lower than the quarter before on rising mining volumes and improved efficiencies.
The broker forecasts production to rise steadily over the remainder of the year with a distinct June quarter weighting, delivering 61koz in the June half vs 54koz in the December half.
Jarden increased FY26-28 gold price forecast by 5-10% and this, together with lower forex and higher production growth, resulted in material changes to its earnings and operational cashflow metrics. EBITDA forecasts for FY25 and FY26 rise by 24% and 19% respectively, resulting in a 26% lift in FY25 EPS forecast and a 22% rise in FY26.
Target price rises to $7.99 from $6.96. Buy rating maintained.
This report was published on January 30, 2025.
Target price is $7.99 Current Price is $7.91 Difference: $0.08
If CMM meets the Jarden target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $7.75, suggesting downside of -2.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 43.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 40.3, implying annual growth of 74.2%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 19.6.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 35.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 39.3, implying annual growth of -2.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 20.1.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CNB CARNABY RESOURCES LIMITED
Mining - Overnight Price: $0.36
Moelis rates ((CNB)) as Buy (1) -
Moelis notes 2Q25 was another strong quarter for Carnaby Resources, both in terms of exploration progress and project development. Cash came in higher than the broker's estimate but this was mainly due to the timing of the Trekelano deal payment.
The broker believes the most significant milestone for the quarter was the company securing a long-term processing solution with Glencore, coupled with Glencores addition as a cornerstone investor. In the broker's view, this further reinforces the viability of a standalone operation at Duchess, effectively paving the way for a low-upfront capex development strategy.
No change to Buy rating. Target price 75c. Next key catalyst is the release of the Pre-Feasibility Study expected around 3Q25.
This report was published on February 2, 2025.
Target price is $0.75 Current Price is $0.36 Difference: $0.39
If CNB meets the Moelis target it will return approximately 108% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 4.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.83.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 4.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 7.50.
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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