Daily Market Reports | Feb 20 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.
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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)
ALK ARB BHP CGF (2) CTD DRR DTL DXS HMC (2) IFT ILU MAH MND OPT ORA PME RWC (2) SEK (2)
PME PRO MEDICUS LIMITED
Medical Equipment & Devices - Overnight Price: $297.14
Moelis rates ((PME)) as Hold (3) -
Pro Medicus reported 1H25 revenue of $97.2m, up 31% y/y. Moelis highlights 1H25 missed consensus forecast on EBITDA by -2.5%.The miss was largely due to the timing of data migration revenue and new contract go-live.
Moelis highlights the company didn't provide quantitative guidance but noted the pipeline remains 'strong across all client classes' and it is very happy with the replenishment rate of new contracts.
The broker left FY25-27 EPS estimates broadly unchanged and believes the company can continue to win new customers at an accelerated rate. Target price $285.5 and rating remains at Hold.
This report was published on February 13, 2025.
Target price is $285.50 Current Price is $297.14 Difference: minus $11.64 (current price is over target).
If PME meets the Moelis target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $242.25, suggesting downside of -16.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 55.00 cents and EPS of 109.40 cents.
At the last closing share price the estimated dividend yield is 0.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 271.61.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 113.5, implying annual growth of 43.2%.
Current consensus DPS estimate is 55.6, implying a prospective dividend yield of 0.2%.
Current consensus EPS estimate suggests the PER is 256.9.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 75.00 cents and EPS of 138.50 cents.
At the last closing share price the estimated dividend yield is 0.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 214.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 168.2, implying annual growth of 48.2%.
Current consensus DPS estimate is 82.5, implying a prospective dividend yield of 0.3%.
Current consensus EPS estimate suggests the PER is 173.4.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
RWC RELIANCE WORLDWIDE CORP. LIMITED
Building Products & Services - Overnight Price: $5.03
Goldman Sachs rates ((RWC)) as Buy (1) -
Reliance Worldwide's 1H25 revenue beat Goldman Sachs' forecast by 2% mainly due to a pull forward of sales in the North America segment.
EBITDA was 3% ahead of the broker's estimate, with the company delivering 3% sales growth on a flat market index in the Americas and stable Asia-Pacific.
The broker highlights the key negative was EMEA and specifically the UK, where sales into the core plumbing and heating market declined -9%. This, the broker suggests, is a key area of uncertainty for the group.
The broker cut FY26 EBITDA estimate by -2% and is now -7% below consensus. Target price cut marginally to $6.00 from $6.05 but Buy rating stays.
This report was published on February 18, 2025.
Target price is $6.00 Current Price is $5.03 Difference: $0.97
If RWC meets the Goldman Sachs target it will return approximately 19% (excluding dividends, fees and charges).
Current consensus price target is $5.65, suggesting upside of 13.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 9.16 cents and EPS of 29.01 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.34.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 31.8, implying annual growth of N/A.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 15.7.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 9.16 cents and EPS of 33.59 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 35.8, implying annual growth of 12.6%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 13.9.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((RWC)) as Neutral (3) -
Jarden notes Reliance Worldwide reported a solid 1H25 result, delivering on guidance but outlook for flat FY25 external revenue growth implies no improvement in market conditions.
Regionally, America recorded a strong 5.4% year-on-year revenue growth and Asia-Pacific saw only 0.2% y/y sales growth.
EMEA revenues fell 5% y/y, driven by UK plumbing and heating markets weakness, but the broker is encouraged by positive continental European markets (ex-Germany).
Target price cut marginally to $5.6 from $5.7, driven by average -1.0% downgrade to FY25-27 EBITDA estimates. Neutral rating retained.
This report was published on February 18, 2025.
Target price is $5.60 Current Price is $5.03 Difference: $0.57
If RWC meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.65, suggesting upside of 13.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 7.63 cents and EPS of 29.16 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 31.8, implying annual growth of N/A.
Current consensus DPS estimate is 9.5, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 15.7.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 8.09 cents and EPS of 31.60 cents.
At the last closing share price the estimated dividend yield is 1.61%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 35.8, implying annual growth of 12.6%.
Current consensus DPS estimate is 10.9, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 13.9.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SEK SEEK LIMITED
Jobs & Skilled Labour Services - Overnight Price: $26.09
Goldman Sachs rates ((SEK)) as Sell (5) -
Seek's 1H25 EBITDA was -4% below Goldman Sachs' forecast and net profit was -2% below. The company updated FY25 guidance, with revenue mid-point unchanged and total-expenditure lowered, but opex increasing.
This resulted in higher cash earnings estimate but lower EBITDA.
The broker cut FY25 EBITDA estimate by -3% and FY26 by -2%. The target price, however, rises to $24.0 from $21.5 on higher multiple of 16x reflecting the growth fund monetisation and improved cash earnings.
Sell maintained.
This report was published on February 18, 2025.
Target price is $24.00 Current Price is $26.09 Difference: minus $2.09 (current price is over target).
If SEK meets the Goldman Sachs target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $28.21, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 45.00 cents and EPS of 42.00 cents.
At the last closing share price the estimated dividend yield is 1.72%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 62.12.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 41.4, implying annual growth of N/A.
Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 62.2.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 56.00 cents and EPS of 53.00 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.23.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 60.2, implying annual growth of 45.4%.
Current consensus DPS estimate is 51.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 42.8.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Jarden rates ((SEK)) as Buy (1) -
Jarden notes Seeks 1H25 result was somewhat messy at a headline level given a change in accounting policy for total expenditure, which resulted in a shift from capex to opex.
EBITDA less capex, which removes the impact of the accounting policy change, beat the broker's forecast by 7%.
The analyst upgraded its EBITDA less capex estimate in FY25 by 5% to $313m, following Seek's updated guidance.
Rating remains at Buy and target price is $28.
This report was published on February 18, 2025.
Target price is $28.00 Current Price is $26.09 Difference: $1.91
If SEK meets the Jarden target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $28.21, suggesting upside of 9.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 40.40 cents and EPS of 42.10 cents.
At the last closing share price the estimated dividend yield is 1.55%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 61.97.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 41.4, implying annual growth of N/A.
Current consensus DPS estimate is 40.4, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 62.2.
Forecast for FY26:
Jarden forecasts a full year FY26 dividend of 46.60 cents and EPS of 58.20 cents.
At the last closing share price the estimated dividend yield is 1.79%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.83.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 60.2, implying annual growth of 45.4%.
Current consensus DPS estimate is 51.3, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 42.8.
Market Sentiment: 0.9
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.
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