Daily Market Reports | 12:04 PM
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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
A1M APZ ASG (2) CSC CTD DYL EHL EVS GOZ LNW MGH MP1 NAN (2) NWL RIC STO TLC TLX VCX VGL VNT
ASG AUTOSPORTS GROUP LIMITED
Automobiles & Components - Overnight Price: $1.67
Moelis rates ((ASG)) as Hold (3) -
Moelis analysts have maintained a Hold rating on Autosports Group, lowering the price target to $1.66 from $1.73.
The 1H25 financial result was in line with prior guidance, with revenue of $1.4bn up 2.1% year-on-year, while underlying EBITDA of $55.7m and NPAT of $14.5m both declined by -34% and -62%, respectively.
Gross profit margins fell to 18.3% from 19.7% in 1H24, impacted by discounting to clear excess inventory, while higher operating and interest costs further pressured earnings.
Management provided no formal guidance but expects 2H revenue to be supported by contributions from the Stillwell Motor Group acquisition and new Greenfield franchises, including Polestar and Zeekr.
The broker remains cautious, highlighting uncertainty in new vehicle demand and potential downside risk to margins.
This report was published on February 21, 2025.
Target price is $1.66 Current Price is $1.67 Difference: minus $0.01 (current price is over target).
If ASG meets the Moelis target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $1.85, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 6.80 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 4.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.2, implying annual growth of -53.1%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 11.8.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 7.10 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 4.25%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.6, implying annual growth of 66.2%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 8.1%.
Current consensus EPS estimate suggests the PER is 7.1.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((ASG)) as Overweight (1) -
Autosports Group's 1H25 financial result was in line with revised guidance but significantly weaker than prior expectations, with pre-tax profit of $19m down -65% year-on-year.
Revenue growth slowed to 1%, with negative like-for-like sales reducing gross profit and OEM incentives, while operating expenses remained in line.
Management provided no formal guidance but flagged continued near-term trading challenges, contrasting with prior expectations of margin recovery.
The broker sees long-term value if new vehicle sales improve and margins recover but notes low earnings visibility in the short term.
Wilsons analysts have maintained an Overweight rating on Autosports Group, lowering the price target to $2.58 from $2.86.
This report was published on February 21, 2025.
Target price is $2.58 Current Price is $1.67 Difference: $0.91
If ASG meets the Wilsons target it will return approximately 54% (excluding dividends, fees and charges).
Current consensus price target is $1.85, suggesting upside of 10.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 9.50 cents and EPS of 14.80 cents.
At the last closing share price the estimated dividend yield is 5.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.2, implying annual growth of -53.1%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 5.0%.
Current consensus EPS estimate suggests the PER is 11.8.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 15.50 cents and EPS of 24.70 cents.
At the last closing share price the estimated dividend yield is 9.28%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.76.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 23.6, implying annual growth of 66.2%.
Current consensus DPS estimate is 13.5, implying a prospective dividend yield of 8.1%.
Current consensus EPS estimate suggests the PER is 7.1.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CSC CAPSTONE COPPER CORP.
Copper - Overnight Price: $9.14
Moelis rates ((CSC)) as Buy (1) -
Capstone Copper's FY24 financial result was weaker than expected, with EBITDA of US$476.3m falling -17% below forecasts due to lower-than-expected 4Q production and higher costs.
Moelis analysts have maintained a Buy rating, lowering their price target to $13.00 from $14.00.
Full-year copper production of 182.7kt missed estimates by -6%, while C1 cash costs of US$2.75/lb exceeded prior expectations.
Management reaffirmed FY25 guidance, with production expected at 220-255kt copper and cash costs in the range of US$2.20-2.50/lb.
Moelis remains positive on Capstones long-term volume growth potential, but has adopted a more conservative outlook on execution risks.
This report was published on February 21, 2025.
Target price is $13.00 Current Price is $9.14 Difference: $3.86
If CSC meets the Moelis target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $12.47, suggesting upside of 37.6%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.58 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 199.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 10.9, 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 83.1.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 6.11 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 149.62.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 15.1, implying annual growth of 38.5%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 60.0.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CTD CORPORATE TRAVEL MANAGEMENT LIMITED
Travel, Leisure & Tourism - Overnight Price: $17.28
Canaccord Genuity rates ((CTD)) as Buy (1) -
Corporate Travel Management's 1Q25 EBITDA beat Canaccord's forecast but operating cash flow was weaker than expected and contribution from Asian business was weak.
On the positive side, Australia/NZ businesses showed more revenue growth potential and strong incremental margin contribution, the broker highlights. In the UK, Corporate Travel became the sole provider to the government rather than one of three, and in the US, margins were strong despite modest revenue increases.
The broker cut FY25 EPS forecast by -1.4% to account for UK government budget cuts but raised FY26-27 forecasts by 14%. Target price rises to $18.8 from $14.4, and Buy retained.
This report was published on February 19, 2025.
Target price is $18.80 Current Price is $17.28 Difference: $1.52
If CTD meets the Canaccord Genuity target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $17.63, suggesting upside of 3.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 34.00 cents and EPS of 74.40 cents.
At the last closing share price the estimated dividend yield is 1.97%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.23.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 75.6, implying annual growth of 30.6%.
Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 22.6.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 49.50 cents and EPS of 98.80 cents.
At the last closing share price the estimated dividend yield is 2.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.49.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 93.5, implying annual growth of 23.7%.
Current consensus DPS estimate is 38.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.3.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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