Daily Market Reports | Mar 03 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)
ABB (2) ADH AEL AIZ ALD ASG AX1 CIP EGH EVO EVS GNE HLS ING IPG IPH IRE JIN KGN LIC (2) LOV MND NEM NHF NIC NXL NXT (3) OML (2) PFP PLS PNV PPE PPS PRN (2) PWR QBE QOR REH RWL SKT SLC SPK (2) THL TLX TTM WES
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $3.96
Goldman Sachs rates ((ABB)) as Neutral (3) -
First half sales and earnings from Aussie Broadband were mixed with EBITDA marginally below Goldman Sachs estimates. Revenue was strong, and combined with disciplined cost management drives a 4% upgrade to FY25 EBITDA guidance.
The Origin Energy ((ORG)) earnings contribution in the first half was stronger than expected, but won't be repeated in the second half. The broker also notes heightened NBN competition has negatively affected the performance of the Buddy subscriber run rate.
Neutral rating retained. Target edges up to $3.90 from $3.80.
This report was published on February 25, 2025.
Target price is $3.90 Current Price is $3.96 Difference: minus $0.06 (current price is over target).
If ABB meets the Goldman Sachs target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $4.52, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 6.00 cents and EPS of 10.00 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 39.60.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.7, implying annual growth of 50.9%.
Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 27.4.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 9.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 2.27%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.29.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.2, implying annual growth of 30.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 21.0.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((ABB)) as Upgrade to Overweight from Market Weight (1) -
Following Aussie Broadband's 1H25 results, Wilsons believes the balance of risks is genuinely to the upside, and has upgraded the rating to Overweight from Market Weight.
Revenue grew 7% y/y to $589m due to mid-teens growth across three of the company's core segments and was in line with the broker's forecast but above consensus.
The company upgraded FY25 EBITDA guidance to $133-138m from $125-135m, with Wilsons positioned at the midpoint at $135m.
The broker observes the company's 2H-to-date net broadband connections were 14,129 which is 36% of forecast 2H total net additions of 39.7k.
Target price lifts to $5.08 from $3.62.
This report was published on February 25, 2025.
Target price is $5.08 Current Price is $3.96 Difference: $1.12
If ABB meets the Wilsons target it will return approximately 28% (excluding dividends, fees and charges).
Current consensus price target is $4.52, suggesting upside of 12.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 6.20 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 1.57%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 14.7, implying annual growth of 50.9%.
Current consensus DPS estimate is 5.1, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 27.4.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 5.40 cents and EPS of 13.60 cents.
At the last closing share price the estimated dividend yield is 1.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.12.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 19.2, implying annual growth of 30.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 21.0.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $2.31
Canaccord Genuity rates ((ADH)) as Buy (1) -
Canaccord Genuity considers the negative reaction following Adairs' result to be somewhat overblown, noting progress on the Adairs brand turnaround has come on in leaps and bounds over 2024 and strong momentum is evident moving into 2025.
While the broker acknowledges pressures on the Focus on Furniture business is a near-term headwind, this isnt new news and there is potential that an improving consumer outlook may provide some pressure release.
With a fairly fixed cost base, the extent of any top-line recovery will determine the meaningfulness of Canaccord's more constructive view and recommendation. Target rises to $3.25 from $2.80, Buy retained.
This report was published on February 25, 2025.
Target price is $3.25 Current Price is $2.31 Difference: $0.94
If ADH meets the Canaccord Genuity target it will return approximately 41% (excluding dividends, fees and charges).
Current consensus price target is $2.69, suggesting upside of 16.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 13.00 cents and EPS of 21.00 cents.
At the last closing share price the estimated dividend yield is 5.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.2, implying annual growth of 18.2%.
Current consensus DPS estimate is 13.3, implying a prospective dividend yield of 5.8%.
Current consensus EPS estimate suggests the PER is 10.9.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 17.00 cents and EPS of 26.00 cents.
At the last closing share price the estimated dividend yield is 7.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 26.5, implying annual growth of 25.0%.
Current consensus DPS estimate is 15.8, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 8.7.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AEL AMPLITUDE ENERGY LIMITED
Crude Oil - Overnight Price: $0.21
Wilsons rates ((AEL)) as Overweight (1) -
Amplitude Energy's 1H25 EBITDAX of $93m beat Wilsons' forecast of $81.8m, and adjusted cash from operations was $81.5m compared with $44.2m in 2H24.
The highlight was the announcement the company's JV partner Mitusi is negotiating terms with a subsidiary of O.G. Energy for a potential sale of its interest in the Otway basin.
The company noted the negotiations are proceeding on the basis O.G. Energy will fund 50% of the past and future ECSP (Environmental Change and Security Program) project expenditure
The broker believes this could pave the way for unlocking the development and exploration program in the Otway basin.
Overweight rating stays and target price is 21c.
This report was published on February 26, 2025.
Target price is $0.21 Current Price is $0.21 Difference: $0
If AEL meets the Wilsons target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $0.28, suggesting upside of 33.3%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 0.7, 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 30.0.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 2.9, implying annual growth of 314.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 7.2.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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