Daily Market Reports | May 28 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)
BSL CAY ELD GMD (2) MVF MYR (2) PFP PLT SGLLV SGM VAU
BSL BLUESCOPE STEEL LIMITED
Steel & Scrap - Overnight Price: $22.71
Goldman Sachs rates ((BSL)) as Buy (1) -
Following visits to steel fabricators, scrap collectors and steel producers, and company facilities in Western Sydney, Goldman Sachs concludes Australian steel demand will grow modestly over 2025 and 2026.
Infrastructure will grow faster than the residential market, but overall growth acceleration is seen as a 2027 story.
The broker believes the read-through for BlueScope Steel is broadly positive.
Buy. Target price $28.70.
This report was published on May 22, 2025.
Target price is $28.70 Current Price is $22.71 Difference: $5.99
If BSL meets the Goldman Sachs target it will return approximately 26% (excluding dividends, fees and charges).
Current consensus price target is $27.34, suggesting upside of 18.8%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 60.00 cents and EPS of 112.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 100.9, implying annual growth of -43.9%.
Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 22.8.
Forecast for FY26:
Goldman Sachs forecasts a full year FY26 dividend of 60.00 cents and EPS of 235.00 cents.
At the last closing share price the estimated dividend yield is 2.64%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.66.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 210.1, implying annual growth of 108.2%.
Current consensus DPS estimate is 60.0, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 11.0.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAY CANYON RESOURCES LIMITED
Aluminium, Bauxite & Alumina - Overnight Price: $0.25
Canaccord Genuity rates ((CAY)) as Speculative Buy (1) -
Canyon Resources has secured around US$140m in debt funding from the AFG Bank Cameroon, which Canaccord Genuity estimate is at an effective rate of 9.54% per annum. An interest rate below 10% for an African project is rare, the broker highlights.
The company will also receive $24.5m from option exercise from its largest shareholder Eagle Eye Asset Holdings, so the total US$155m in funding will now meet 58% of the estimated US$266m capex for the Minim-Martap project.
The broker reckons this will allow the company to commence operations below the bankable feasibility study's 6.4Mtpa run rate.
Speculative Buy. Target unchanged at 35c.
This report was published on May 26, 2025.
Target price is $0.35 Current Price is $0.25 Difference: $0.1
If CAY meets the Canaccord Genuity target it will return approximately 40% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 250.00.
Forecast for FY26:
Canaccord Genuity forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 1250.00.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ELD ELDERS LIMITED
Agriculture - Overnight Price: $6.32
Wilsons rates ((ELD)) as Upgrade to Overweight from Market Weight (1) -
Wilsons saw how Elders posted a soft 1H25, with EBITDA below forecast and working capital pressure continuing to build.
Despite solid cost control, earnings fell short. Gross profit missed by -4%, dragged lower by Retail Products. Operating cash flow halved year-on-year, and leverage is now forecast to push past the groups comfort zone.
Yet, Wilsons sees upside. While timing of the ACCCs decision on the proposed acquisition of Delta Agricultural (due 29 May) looms as a swing factor, the broker argues the market is too focused on risk, ignoring Elders through-the-cycle earnings capacity and potential step-up in FY26-27 as Delta integrates.
System upgrades remain a known wildcard. The broker's price target drops to $8.22 but rating is upgraded to Overweight from Market Weight.
On Wilsons' projections, Elders will be paying 36c in dividends to shareholders for many years into the future.
This report was published on May 27, 2025.
Target price is $8.22 Current Price is $6.32 Difference: $1.9
If ELD meets the Wilsons target it will return approximately 30% (excluding dividends, fees and charges).
Current consensus price target is $8.81, suggesting upside of 41.5%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 36.00 cents and EPS of 53.70 cents.
At the last closing share price the estimated dividend yield is 5.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.77.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 52.9, implying annual growth of 87.5%.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 5.6%.
Current consensus EPS estimate suggests the PER is 11.8.
Forecast for FY26:
Wilsons forecasts a full year FY26 dividend of 36.00 cents and EPS of 57.90 cents.
At the last closing share price the estimated dividend yield is 5.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.92.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.7, implying annual growth of 20.4%.
Current consensus DPS estimate is 39.4, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 9.8.
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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