Daily Market Reports | 11:08 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.
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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)
29M AGN ANG ARB BGL BPT CSL DRR FPH IMB PBH PDI PEN PER PLS PME PNI (2) PPT PXA SFR STK SUN SYL SYR TWE VSL WGX (2) WOW
VSL VULCAN STEEL LIMITED
Steel & Scrap - Overnight Price: $6.99
Jarden rates ((VSL)) as Neutral (3) -
Ahead of Vulcan Steel's 1H25 result on February 11, Jarden has reduced the FY25 EBITDA forecast to NZ$107m from NZ$125m. The reduced forecast incorporates a pushback in the timing of market recovery to the back end of 2H25 from 2Q25 expected before.
The broker notes Vulcan's balance sheet is under a little pressure but based on its FY26 estimates, the company should not breach covenants. Vulcan had agreed with its lenders to provide a relaxation of existing banking covenant thresholds through to the
end of FY25.
Target price cut to NZ$8.00 from NZ$8.05 while Neutral rating remains.
This report was published on February 4, 2025.
Current Price is $6.99. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 7.77 cents and EPS of 9.51 cents.
At the last closing share price the estimated dividend yield is 1.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.52.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 24.05 cents and EPS of 32.09 cents.
At the last closing share price the estimated dividend yield is 3.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.78.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WGX WESTGOLD RESOURCES LIMITED
Gold & Silver - Overnight Price: $2.42
Canaccord Genuity rates ((WGX)) as Buy (1) -
Westgold Resources revised its FY25 guidance lower to 330-350koz from previously flagged 400-420koz, and raised cost guidance to 2,400-2,600/oz from $2,000-2,300/oz. The company lowered FY25 growth capex guidance to -$200m from -$235m.
Canaccord Genuity lowered its FY25 production forecast to 341koz, down -14% and raised the cost estimate by 12% to $2,553/oz. The broker is forecasting 2H25 free cash flow of $71m from $188m estimated before.
For FY26, the broker cut the production forecast by -10% to 448koz and increased the cost estimate by 7% to $2,496/oz. The analyst is forecasting FY26 growth capex of -$250m, up from FY25 guidance of -$200m.
Target price decreases to $4.25 from $4.70. Buy rating is retained.
This report was published on February 3, 2025.
Target price is $4.25 Current Price is $2.42 Difference: $1.83
If WGX meets the Canaccord Genuity target it will return approximately 76% (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 1.00 cents and EPS of 28.00 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.64.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 1.00 cents and EPS of 43.00 cents.
At the last closing share price the estimated dividend yield is 0.41%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.63.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Petra Capital rates ((WGX)) as Buy (1) -
Westgold Resources has revised its FY25 mid-point production guidance lower to 340koz (previous 410koz) with mid-point cost guidance raised to $2,500/oz from $2,150/oz before.
While the guidance revision is a negative, Petral Capital highlights Westgold's guided run rate of 400koz per annum in the June quarter will position the company as one of the largest gold producers on the ASX.
The company's 100% unhedged ounces give it significant leverage to a buoyant gold price environment, the broker suggests.
Target price lowered to $3.32 on downward revision to FY25 production forecast and rise in cost estimate. Buy rating retained.
This report was published on February 4, 2025.
Target price is $3.32 Current Price is $2.42 Difference: $0.9
If WGX meets the Petra Capital target it will return approximately 37% (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 5.00 cents and EPS of 17.70 cents.
At the last closing share price the estimated dividend yield is 2.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.67.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 10.00 cents and EPS of 39.10 cents.
At the last closing share price the estimated dividend yield is 4.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.19.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WOW WOOLWORTHS GROUP LIMITED
Food, Beverages & Tobacco - Overnight Price: $29.57
Goldman Sachs rates ((WOW)) as Buy (1) -
Woolworths Group announced changes to its food leadership and organisational structure to promote a greater focus on areas where its customers are most impacted.
Goldman Sachs views the changes as a positive step providing certainty around the leadership team.
In particular, the broker believes Annette Karantonis increased management responsibilities to include Greenstock and Own Brand will likely enable increased organisational/operational efficiency to be delivered in the Australian foods business.
The company could use Sally Copland's (appointed as NZ managing director) extensive omni-channel experience and time in Australia to drive transformation initiatives in NZ, the broker notes.
Target price $36.1. Buy rating retained.
This report was published on February 6, 2025.
Target price is $36.10 Current Price is $29.57 Difference: $6.53
If WOW meets the Goldman Sachs target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $32.14, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 96.00 cents and EPS of 121.00 cents.
At the last closing share price the estimated dividend yield is 3.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 126.6, implying annual growth of 1330.5%.
Current consensus DPS estimate is 93.2, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 23.4.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 110.00 cents and EPS of 146.00 cents.
At the last closing share price the estimated dividend yield is 3.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 141.0, implying annual growth of 11.4%.
Current consensus DPS estimate is 103.2, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 21.0.
Market Sentiment: 0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide experienced, intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.
Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.
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