Daily Market Reports | Feb 18 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.
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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)
A2M AD8 AGN AMP AOV ASB ASL BRG BSL CCP CNB COH CQE DVP EMR EVN FFM GDG GQG IMB IMD NHC NST OBM PLY PPS RXL SBM TPW WDS
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $7.12
Wilsons rates ((A2M)) as Market Weight (3) -
Following stronger-than-expected first half results, Wilsons raises its target for a2 Milk Co to $7.06 from $5.75, driven by higher revenue growth, increased interest income, and a shift in first-half marketing spend to the second half.
Revenue exceeded the analysts' forecast by 3% driven by stronger sales in China, Other Asia and the US, and profit was a 17% beat.
The broker highlights market share gains, new product launches, and continued strategic execution by management but maintains a Market Weight rating due to the supply chain transformation and challenges in the infant formula market.
This report was published on February 18, 2025.
Target price is $7.06 Current Price is $7.12 Difference: minus $0.06 (current price is over target).
If A2M meets the Wilsons target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $7.05, suggesting downside of -4.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 16.43 cents and EPS of 25.56 cents.
At the last closing share price the estimated dividend yield is 2.31%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.5, implying annual growth of N/A.
Current consensus DPS estimate is 15.7, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 30.0.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 18.26 cents and EPS of 27.94 cents.
At the last closing share price the estimated dividend yield is 2.56%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.1, implying annual growth of 10.6%.
Current consensus DPS estimate is 18.9, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 27.1.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AD8 AUDINATE GROUP LIMITED
Hardware & Equipment - Overnight Price: $9.59
Moelis rates ((AD8)) as Hold (3) -
Moelis notes Audinate Group's 1H25 result indicated improved momentum in the second quarter on higher gross margin and operating cost management plus currency tailwind.
The company expects moderate improvement from 1Q to 2Q FY25 to persist into 2H. The broker reckons this provides an encouraging sign Audinate's volume growth can return to its longer-term trend.
The broker raised the gross profit estimate for FY25 to $49.7m from $47.6m, which combined with lower cost growth resulted in an upgrade to FY25's net loss estimate.
The broker also revised longer-term estimates to account for higher margins, which pushed target price higher to $10.27 from $9.45. Hold rating retained.
This report was published on February 17, 2025.
Target price is $10.27 Current Price is $9.59 Difference: $0.68
If AD8 meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $9.45, suggesting downside of -3.1%(ex-dividends)
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 9.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 106.56.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -11.9, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 1.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 737.69.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -1.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is N/A.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AGN ARGENICA THERAPEUTICS LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.78
Petra Capital rates ((AGN)) as Buy (1) -
Argenica Therapeutics' 1H25 net loss of -$1.2m was larger than Petra Capital's forecast of -$0.7m loss and was driven by lower recognition of grant income. Cash of $15.1m was in line and funds the company through to key stroke trial results, the broker notes.
The broker highlights the top-line result in August from the stroke trial is the key value driver for the stock. The company is also preparing for phase 3 stroke trial and progressing partnering discussions.
The broker cut FY26 EPS forecast by -28%, largely driven by an increase in forecast general expenses. Target price reduces marginally to $1.19 from $1.20, and Buy maintained.
This report was published on February 14, 2025.
Target price is $1.19 Current Price is $0.78 Difference: $0.41
If AGN meets the Petra Capital target it will return approximately 53% (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 minus 5.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.93.
Forecast for FY26:
Petra Capital forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 26.90.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AMP AMP LIMITED
Wealth Management & Investments - Overnight Price: $1.42
Goldman Sachs rates ((AMP)) as Neutral (3) -
Goldman Sachs observes AMP shares fell sharply after the 2024 results were delivered, having missed guidance in terms of net interest margins and dividends as well as capital management expectations.
The headline results beat forecasts largely because of cost management. Goldman Sachs remains optimistic around further capital management, noting platform flows are improving. Neutral retained. Target is $1.48, lowered from $1.54.
This report was published on February 17, 2025.
Target price is $1.48 Current Price is $1.42 Difference: $0.06
If AMP meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $1.61, suggesting upside of 14.2%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 4.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.20.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.8, implying annual growth of 52.3%.
Current consensus DPS estimate is 4.0, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 13.1.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 4.00 cents and EPS of 11.00 cents.
At the last closing share price the estimated dividend yield is 2.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.91.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.4, implying annual growth of 5.6%.
Current consensus DPS estimate is 4.8, implying a prospective dividend yield of 3.4%.
Current consensus EPS estimate suggests the PER is 12.4.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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