Daily Market Reports | May 05 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)
ACF ALL ALQ ARX ASX BAP BBT BCI BGL BPT BSL BXB CIA (2) CMM (3) COL CRN CYL EMR FMG HGO IDX IGO (2) IPD IPH LNW MAC MAH MGR MIN NST (2) ORG PLT PPE QBE RMS RUL SFR SGP SMR VAU WDS WHC WIA
ACF ACROW LIMITED
Building Products & Services - Overnight Price: $1.06
Moelis rates ((ACF)) as Buy (1) -
Moelis retains a Buy rating and $1.44 target price on Acrow following its acquisitions of Brand Australia and Above Scaffolding for -$23m upfront, with a potential $6m earn-out.
The deals add geographic exposure in NSW and are expected to contribute around $40m revenue and at least $7m earnings (EBITDA) in FY26, at an implied sub 4x EV/EBITDA multiple, the analyst states.
Completion was effective 1 May, funded via existing debt facilities.
Management updated FY25 guidance lower due to delays in project starts, now expecting $260270m revenue and $8083m earnings (EBITDA), with net profit after tax lowered to $32.5$35m.
Moelis cuts FY25 EPS estimate by -6% but raises FY2627 by 56%, citing timing-related deferral of earnings. The broker expects Queensland activity to accelerate, supported by the $60m BHP Mitsubishi Alliance ((BHP)) contract and Olympic infrastructure rollout.
This report was published on May 1, 2025.
Target price is $1.44 Current Price is $1.06 Difference: $0.38
If ACF meets the Moelis target it will return approximately 36% (excluding dividends, fees and charges).
Current consensus price target is $1.32, suggesting upside of 24.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 5.70 cents and EPS of 10.90 cents.
At the last closing share price the estimated dividend yield is 5.38%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.72.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.1, implying annual growth of 25.1%.
Current consensus DPS estimate is 5.9, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 9.5.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 6.60 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 6.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.09.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 13.1, implying annual growth of 18.0%.
Current consensus DPS estimate is 6.4, implying a prospective dividend yield of 6.0%.
Current consensus EPS estimate suggests the PER is 8.1.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALL ARISTOCRAT LEISURE LIMITED
Gaming - Overnight Price: $67.66
Goldman Sachs rates ((ALL)) as Buy (1) -
Ahead of Aristocrat Leisure's 1H25 result on May 14, Goldman Sachs analysts have previewed the result and outlook in the context of US macro headwinds.
The analysts note their in-house US growth forecast is 1.2% over 2025, compared with 0.1%/-2.6% outcome during 2008/2009, respectively.
Back then, US casino gross gaming revenue (GGR) fell only -3%/-5% in 2008/2009, respectively. The broker expects a minor impact this time on a better growth outlook and because the company remains well-positioned to offset macro headwinds.
For 1H25, the broker forecasts EBITDA of $1.028bn vs consensus of $1.131bn, and will be focusing on fee/day trends and M&A commentary.
Buy. Target cut to $77 from $82.
This report was published on April 30, 2025.
Target price is $77.00 Current Price is $67.66 Difference: $9.34
If ALL meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $76.93, suggesting upside of 13.7%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 91.00 cents and EPS of 266.00 cents.
At the last closing share price the estimated dividend yield is 1.34%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 262.8, implying annual growth of 28.3%.
Current consensus DPS estimate is 89.8, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 25.7.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 102.00 cents and EPS of 301.00 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.48.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 292.5, implying annual growth of 11.3%.
Current consensus DPS estimate is 99.8, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 23.1.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ALQ ALS LIMITED
Industrial Sector Contractors & Engineers - Overnight Price: $17.28
Goldman Sachs rates ((ALQ)) as Buy (1) -
Goldman Sachs revised ALS Ltd's FY25-27 earnings forecasts following a recent trading update. This resulted in a -2% cut to FY25 net profit estimate and a 2% lift to both FY26 and FY27.
Buy. Target rises to $17.80 from $17.75.
This report was published on April 30, 2025.
Target price is $17.80 Current Price is $17.28 Difference: $0.52
If ALQ meets the Goldman Sachs target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $17.75, suggesting upside of 2.7%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 EPS of 64.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.4, implying annual growth of 2274.5%.
Current consensus DPS estimate is 38.2, implying a prospective dividend yield of 2.2%.
Current consensus EPS estimate suggests the PER is 27.3.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 EPS of 72.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 73.6, implying annual growth of 16.1%.
Current consensus DPS estimate is 44.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 23.5.
Market Sentiment: 0.9
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARX AROA BIOSURGERY LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.45
Canaccord Genuity rates ((ARX)) as Buy (1) -
Canaccord Genuity retains a Buy rating on Aroa Biosurgery and a 90c price target, following a 4Q25 update that was in line with the broker's expectations.
Management retained FY25 revenue guidance of NZ$8184m and earnings (EBITDA) of NZ$2NZ$4m. Cash receipts rose 12% year-on-year to NZ$20.1m for the quarter, and the company posted positive operating cash flow for the second consecutive quarter.
Myriad sales rose 11% quarter-on-quarter and 32% year-on-year, achieving a record US$2m in March, though growth expectations have been tempered by Canaccord Genuity to 35% in FY26 from 50%-plus.
Aroa plans to add 1015 sales reps in FY26, aiming to build scale while controlling costs. The Tela Bio partnership remains supportive, though recent sales underperformance and operational headwinds have weighed on sentiment.
This report was published on April 29, 2025.
Target price is $0.90 Current Price is $0.45 Difference: $0.45
If ARX meets the Canaccord Genuity target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 123.29.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.51.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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