Daily Market Reports | 2:40 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)
A2M ABB (2) ADH AUC CCP CSX DRO EIQ ELS EOS HLO IGO MP1 QAL SHL SUL SXE TCL WBC
A2M A2 MILK COMPANY LIMITED
Dairy - Overnight Price: $5.91
Jarden rates ((A2M)) as Upgrade to Neutral from Underweight (3) -
Jarden upgrades a2 Milk Co to Neutral from Underweight and reduces the target to NZ$7.36 from NZ$9.20 to include recent changes from the Ministry of Primary Industries as it relates to infant formula cereulide toxin testing.
The broker takes some comfort, as time has passed, that there are no further issues that need to be notified to the market.
Its desktop channel checks also confirm stock shortages in China Label across many online storefronts, which aligns with supply constraints foreshadowed in the trading update in mid April.
Jarden acknowledges there remain many unanswered questions regarding the investment case, but also finds the reduced cereulide tail risk is now better reflected in the share price de-rating.
On June 15th the broker followed up as follows:
Jarden maintains a Neutral rating for a2 Milk Co with a NZ$7.36 target price following channel checks indicating an emerging restock cycle for its China Label infant milk formula range.
Desktop analysis of popular Taobao storefronts and localised social media monitoring confirm the gradual re-entry of product supply across Mother and Baby Store and general trade channels.
New product batches manufactured after February 2026 feature an additional traceability QR code sticker, allowing consumers to directly verify customs clearance and negative cereulide testing results.
The analyst notes the stabilisation of product availability reduces severe tail risks associated with product recalls or structural supply chain disruptions.
A -20% discount remains embedded within the 12-month discounted cash flow valuation to account for residual uncertainty ahead of opening guidance for FY27 in August.
This report was published on June 11, 2026.
Current Price is $5.91. Target price not assessed.
Current consensus price target is $8.10, suggesting upside of 33.2%(ex-dividends)
Forecast for FY26:
Current consensus EPS estimate is 23.7, implying annual growth of N/A.
Current consensus DPS estimate is 17.8, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 25.7.
Forecast for FY27:
Current consensus EPS estimate is 28.3, implying annual growth of 19.4%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 6.8%.
Current consensus EPS estimate suggests the PER is 21.5.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ABB AUSSIE BROADBAND LIMITED
Telecommunication - Overnight Price: $5.20
Canaccord Genuity rates ((ABB)) as Buy (1) -
Canaccord Genuity maintains a Buy rating on Aussie Broadband while lowering its target price to $6.87 from $6.94 following a trading update which largely met expectations and confirmed acquisition integration timelines remain on track.
FY26 EBITDA guidance was reiterated near the midpoint of the $162m-$167m range, while capital expenditure is now expected at the upper end of previous guidance and net debt to EBITDA stood at 0.72x at the end of May.
Subscriber growth moderated slightly during the second half of FY26, though the pending migration of More, Tangerine and Buddy customers is expected to lift the group's customer base beyond 1.3m subscribers, making it the third-largest NBN service provider in Australia.
The migration of approximately 275,000 More and Tangerine subscribers is now expected to be completed by June 30, 2026 with a retention rate of around 95%, while approximately 350,000 AGL Telco subscribers remain scheduled to transition during the first half of FY27.
The analyst made only minor forecast adjustments, increasing wholesale subscriber estimates and capital expenditure assumptions, while maintaining the view the acquired customer bases provide medium-term earnings upside through margin enhancement and service upgrades.
This report was published on June 16, 2026.
Target price is $6.87 Current Price is $5.20 Difference: $1.67
If ABB meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
Current consensus price target is $6.08, suggesting upside of 16.3%(ex-dividends)
Forecast for FY26:
Current consensus EPS estimate is 20.3, implying annual growth of 81.4%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 25.8.
Forecast for FY27:
Current consensus EPS estimate is 27.9, implying annual growth of 37.4%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 18.7.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
SXE SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED
Mining Sector Contracting - Overnight Price: $4.82
Moelis rates ((SXE)) as Buy (1) -
Moelis retains a Buy rating for Southern Cross Electrical Engineering with its target price increased to $4.70, following a strong trading update.
Management provided maiden FY27 EBITDA guidance of at least $100m —a material step-up on prior consensus of $80m— alongside an upgrade to FY26 EBITDA guidance to at least $75m.
New work awards totalling $150m include the NextDC ((NXT)) S4 data centre, a switchboard order for a major data centre, and Rio Tinto's ((RIO)) Pilbara MCA, underpinning visible FY27 earnings inflection as data centre wins translate into a material earnings step change.
The analyst revises FY26-FY28 EPS estimates by -2.3%/17.6%/16.9% to 15.3c/19.5c/20.1c respectively, with DPS held steady at 8.0c across FY26-FY28.
Management noted the current tender pipeline exceeds $1bn and FY27 data centre revenue is expected to be approximately three times FY26 levels of $120m.
The investment thesis centred on strong structural tailwinds in electrification and decarbonisation translating into data centre and infrastructure spend.
This report was published on June 16, 2026.
Target price is $4.70 Current Price is $4.82 Difference: minus $0.12 (current price is over target).
If SXE meets the Moelis target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY26:
Moelis forecasts a full year FY26 dividend of 8.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 31.50.
Forecast for FY27:
Moelis forecasts a full year FY27 dividend of 8.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.72.
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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