Daily Market Reports | Feb 19 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)
A2M ARB (2) AZJ BEN BRI BSL CEN GPT HUB (3) IFM IGO IPX MAH (2) NUZ PNR S32 SBM SDV SGF SHL SHV SPZ TPW WBC WDS WGX XRF
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $7.31
Jarden rates ((A2M)) as Overweight (2) -
A2 Milk Company delivered a strong operating result with headline infant formula milk (IMF) revenues ahead of Jarden's estimates. The company upgraded full-year top line growth and margin guidance, and declared its first dividend.
The broker highlights this marks another creditable performance given the China IMF end market remains in structural decline, though the company's protein segment continues to grow and now represents 20% of total value vs 18% in FY24.
The broker raised FY25-26 EPS forecasts by 6% and 2% respectively. Target price lifts to NZ$7.75, and Overweight maintained.
This report was published on February 17, 2025.
Current Price is $7.31. Target price not assessed.
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:
Jarden forecasts a full year FY25 dividend of 16.89 cents and EPS of 24.92 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 29.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.2, implying annual growth of N/A.
Current consensus DPS estimate is 16.4, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 30.3.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 19.63 cents and EPS of 26.02 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.10.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.6, implying annual growth of 14.0%.
Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 26.6.
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
ARB ARB CORPORATION LIMITED
Automobiles & Components - Overnight Price: $39.88
Canaccord Genuity rates ((ARB)) as Hold (3) -
First half sales revenue from ARB Corp was slightly below Canaccord Genuity's estimates. Despite strong gross margins, net profit was affected by costs and also below estimates.
The broker believes the issues are cyclical rather than structural and so the question is now about how long this weakness will prevail.
Improvement is not anticipated until the first half of FY26 and the broker emphasises the stock is not currently priced for any cyclical weakness. Hold maintained along with a $34.70 target.
This report was published on February 18, 2025.
Target price is $34.70 Current Price is $39.88 Difference: minus $5.18 (current price is over target).
If ARB meets the Canaccord Genuity target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $42.89, suggesting upside of 8.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 69.00 cents and EPS of 124.00 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 126.4, implying annual growth of 1.2%.
Current consensus DPS estimate is 69.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.4.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 73.00 cents and EPS of 132.00 cents.
At the last closing share price the estimated dividend yield is 1.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 30.21.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 143.5, implying annual growth of 13.5%.
Current consensus DPS estimate is 78.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.7.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((ARB)) as Overweight (1) -
ARB Corp's 1H25 earnings modestly missed Wilsons' expectations, primarily driven by higher operating expenses (opex) associated with investment in engineering to accelerate new product development.
The broker highlights strong 1H export sales growth is a result of the company's investment in distribution and product expansion to support long-term growth, which remains its attractive feature.
The broker lowered FY25 EBITDA estimate by -6%, driven by lower sales and higher opex, and cut FY26 by -2% on higher opex.
Target price drops to $49.12 from $50.27, and Overweight maintained.
This report was published on February 19, 2025.
Target price is $49.12 Current Price is $39.88 Difference: $9.24
If ARB meets the Wilsons target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $42.89, suggesting upside of 8.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 69.00 cents and EPS of 121.10 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.93.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 126.4, implying annual growth of 1.2%.
Current consensus DPS estimate is 69.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 31.4.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 76.00 cents and EPS of 140.40 cents.
At the last closing share price the estimated dividend yield is 1.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.40.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 143.5, implying annual growth of 13.5%.
Current consensus DPS estimate is 78.7, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 27.7.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AZJ AURIZON HOLDINGS LIMITED
Transportation & Logistics - Overnight Price: $3.19
Jarden rates ((AZJ)) as Neutral (3) -
Aurizon Holdings' 1H25 net profit missed Jarden's estimate, with the broker noting the result was characterised by a large miss on expectations for Bulk and benefit from a legal settlement.
The broker sees the outlook as increasingly dominated by investors questioning the two paths forward for earnings growth. Can Bulk deliver on expectations in FY26 and beyond, and whether Containerised Freight and Land-bridging will meaningfully contribute in the near term?
Jarden remains cautious on the outlook for Bulk earnings contribution, with its EBIT estimates averaging -9% below consensus over FY25-27. Target price $3.2 and Neutral rating.
This report was published on February 17, 2025.
Target price is $3.20 Current Price is $3.19 Difference: $0.01
If AZJ meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $3.41, suggesting upside of 4.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 19.10 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 5.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.7, implying annual growth of 7.4%.
Current consensus DPS estimate is 19.1, implying a prospective dividend yield of 5.9%.
Current consensus EPS estimate suggests the PER is 13.7.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 20.50 cents and EPS of 26.20 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 27.1, implying annual growth of 14.3%.
Current consensus DPS estimate is 22.1, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 12.0.
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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