Australian Broker Call *Extra* Edition – Sep 04, 2025

Daily Market Reports | 2:01 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

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)

ADH   AIZ   ANG   APE   ATA   BGL   BOQ   BRI   CUV   CVN   DMP   DUR   EBO   EML   EXP   FCL   FLT (2)   FWD   GDG   GGP (2)   KAR (2)   LIC (3)   LOV   M7T   MAQ (2)   MIN   MPL   NDO   NIC   NXT   PNC   QAN   RDY (2)   RHC   SDR (3)   SIG   SYL   TAH   TPG   TRJ   WES   WOW   WTC  

ADH    ADAIRS LIMITED

Furniture & Renovation - Overnight Price: $2.50

Jarden rates ((ADH)) as Upgrade to Buy from Overweight (1) -

Adairs' FY25 EBIT of $55.2m came inside the guidance range, Jarden highlights, with EBIT for the Adairs brand at the top end, and Focus and Mocka at the middle of the range. Gross margin was up 70bps to 46.8% but missed the consensus.

Trading for the first seven weeks of FY26 was strong, with group sales up 22.6% y/y vs 5% consensus, and within that, Adairs and Mocka outperformed.

The broker sees upside risk from Mocka standalone concept via increasing addressable share of the furniture market, and notes Focus is making progress with cost reductions and refurbished stores.

FY26-28 revenue forecasts lifted by 4-8%, and EBITDA estimates increase by 8-17%.

Target rises to $2.96 from $2.07. Rating upgraded to Buy from Overweight.

This report was published on August 28, 2025.

Target price is $2.96 Current Price is $2.50 Difference: $0.46
If ADH meets the Jarden target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $2.69, suggesting upside of 6.6%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY26:

Jarden forecasts a full year FY26 EPS of 23.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.87.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 21.5, implying annual growth of 47.2%.
Current consensus DPS estimate is 12.1, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 11.7.

Forecast for FY27:

Jarden forecasts a full year FY27 EPS of 27.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.06.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 25.5, implying annual growth of 18.6%.
Current consensus DPS estimate is 14.4, implying a prospective dividend yield of 5.7%.
Current consensus EPS estimate suggests the PER is 9.9.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

AIZ    AIR NEW ZEALAND LIMITED

Transportation & Logistics - Overnight Price: $0.54

Jarden rates ((AIZ)) as Neutral (3) -

Jarden notes Air New Zealand's FY25 net profit before tax of NZ$189m met the top end of guidance provided in April, but masked very weak 2H as engine issues escalated. The full year earnings impact from engine issues was -$NZ$300m.

The result was supported by compensation from engine manufacturers and unredeemed covid credits booked as revenue. The airline expects to have 9-10 aircraft grounded in 1H26, with modest improvement thereafter. 

Reported net profit before tax in 1H26 is expected to be “similar to or less than” NZ$34m (2H25 result). The broker highlights this implies an underlying net loss of -NZ$41m when adjusted for covid credits and engine compensation.

Neutral. Target unchanged at NZ59c.

This report was published on August 29, 2025.

Current Price is $0.54. Target price not assessed.
The company's fiscal year ends in June.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 2.28 cents and EPS of 0.64 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 84.51.

Forecast for FY27:

Jarden forecasts a full year FY27 dividend of 2.28 cents and EPS of 2.83 cents.
At the last closing share price the estimated dividend yield is 4.23%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.09.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ANG    AUSTIN ENGINEERING LIMITED

Mining Sector Contracting - Overnight Price: $0.31

Petra Capital rates ((ANG)) as Buy (1) -

As highlighted by Petra Capital, Austin Engineering reported another "messy" result, although it was largely expected.

Cash flow missed, while net profit of $29.6m rose 22% on the prior period, and on a reported basis rose 17.2%, a near record. Revenue advanced 22%, with all segments contributing.

FY26 guidance for revenue and earnings (EBIT) implies, at the midpoint, a revenue run rate slightly below 2H25 and an earnings (EBIT) margin of 10.8% versus 9.2% in FY25.

Petra Capital has lowered its EPS estimates by -21% for FY26 and -10% for FY27.

Buy rating reiterated. Target set at 46c.

This report was published on August 27, 2025.

Target price is $0.46 Current Price is $0.31 Difference: $0.15
If ANG meets the Petra Capital target it will return approximately 48% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY26:

Petra Capital forecasts a full year FY26 dividend of 1.30 cents and EPS of 4.60 cents.
At the last closing share price the estimated dividend yield is 4.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.74.

Forecast for FY27:

Petra Capital forecasts a full year FY27 dividend of 2.00 cents and EPS of 6.50 cents.
At the last closing share price the estimated dividend yield is 6.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.77.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components - Overnight Price: $26.80

Moelis rates ((APE)) as Hold (3) -

Moelis notes Eagers Automotive's 1H25 revenue of $6.5bn was up $1bn y/y and ahead of FY25 guidance for over $1bn growth. Order momentum was stronger than expected, with market share growing to 13.8% vs 11.1% in 1H24.

However, margins compressed, with gross margin declining to 16.7% from 17.8% in 1H24, and underlying profit before tax margin shrinking to 3% from 3.3%. 

The company highlighted trough margins have likely passed and 2H margin tailwinds are expected from stable new car margins, productivity benefit, property optimisation and interest rate relief.

FY25 net profit forecast lifted by 1.1% and FY26 by 1.9%.

Hold. Target rises to $28.62 from $18.02, capturing potential upside risks, including M&A opportunity.

This report was published on August 29, 2025.

Target price is $28.62 Current Price is $26.80 Difference: $1.82
If APE meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $22.95, suggesting downside of -13.8%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY25:

Moelis forecasts a full year FY25 dividend of 82.40 cents and EPS of 106.70 cents.
At the last closing share price the estimated dividend yield is 3.07%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.12.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 103.6, implying annual growth of 29.1%.
Current consensus DPS estimate is 74.8, implying a prospective dividend yield of 2.8%.
Current consensus EPS estimate suggests the PER is 25.7.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 87.50 cents and EPS of 113.50 cents.
At the last closing share price the estimated dividend yield is 3.26%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.61.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 113.5, implying annual growth of 9.6%.
Current consensus DPS estimate is 76.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 23.5.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ATA    ATTURRA LIMITED

Software & Services - Overnight Price: $0.79

Moelis rates ((ATA)) as Buy (1) -

Moelis points to robust FY25 revenue and earnings for Atturra, with momentum behind organic growth and boosted by recent acquisitions.

Predictable revenue rose to 78% of the total from recurring managed services and long-term contracts. Cloud contributed over $30m at double group margins. Defence and government were mixed due to timing issues.

FY26 guidance infers another "step up" in FY26, with a revenue target of $384m and underlying earnings (EBITDA) of $40.3m-plus.

Moelis lowers its EPS forecasts by -2.7% for FY26 and -2.4% for FY27.

Target price slips to $1.06 from $1.07 and Buy rating retained

This report was published on August 27, 2025.

Target price is $1.06 Current Price is $0.79 Difference: $0.27
If ATA meets the Moelis target it will return approximately 34% (excluding dividends, fees and charges).
Current consensus price target is $1.07, suggesting upside of 35.0%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 0.00 cents and EPS of 5.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.9, implying annual growth of 126.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 13.4.

Forecast for FY27:

Moelis forecasts a full year FY27 dividend of 0.00 cents and EPS of 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.3, implying annual growth of 6.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 12.5.

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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