Australian Broker Call
Produced and copyrighted by at www.fnarena.com
September 07, 2023
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, 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.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Today's Upgrades and Downgrades
CHN - | Chalice Mining | Upgrade to Neutral from Sell | UBS |
ORA - | Orora | Downgrade to Hold from Add | Morgans |
A11 ATLANTIC LITHIUM LIMITED.
New Battery Elements
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.41
Macquarie rates A11 as Outperform (1) -
Atlantic Lithium has new assays from infill and exploration RC drilling at Ewoyaa. The intercepts are high-great intervals including 48m at 1.31% lithium from 137m, 24m at 1.86% lithium from 10m and 29m at 1.37% lithium from 184m.
Macquarie notes upside to the resource is underpinned by these results. Outperform and 70c target retained.
Target price is $0.70 Current Price is $0.41 Difference: $0.29
If A11 meets the Macquarie target it will return approximately 71% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.90 cents. |
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.70 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARB ARB CORPORATION LIMITED
Automobiles & Components
More Research Tools In Stock Analysis - click HERE
Overnight Price: $32.76
Ord Minnett rates ARB as Buy (1) -
Data from the Federal Chamber of Automotive Industries indicates new vehicle sales increased 15.4% in August, representing the strongest August on record. The key area for ARB Corp is the SUV market, where sales increased 28.3%.
This should add to the order book although Ord Minnett notes continued staff shortages across the national network present challenges in meeting customer demand. Buy rating and $36 target maintained.
Target price is $36.00 Current Price is $32.76 Difference: $3.24
If ARB meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $29.55, suggesting downside of -8.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 69.00 cents and EPS of 125.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 119.3, implying annual growth of 10.5%. Current consensus DPS estimate is 64.6, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 27.2. |
Forecast for FY25:
Ord Minnett forecasts a full year FY25 dividend of 77.50 cents and EPS of 141.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 131.7, implying annual growth of 10.4%. Current consensus DPS estimate is 72.1, implying a prospective dividend yield of 2.2%. Current consensus EPS estimate suggests the PER is 24.6. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ART AIRTASKER LIMITED
Online media & mobile platforms
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.20
Morgan Stanley rates ART as Underweight (5) -
Airtasker's FY23 result missed Morgan Stanley's estimates slightly, as Australian business revenue growth in the second half slowed to just 6%. The broker finds it unclear just how much of the slowdown is cyclical compared with structural.
The company has committed to reach positive free cash flow by the end of FY24, welcomed by the broker, although the market is expected to wait for actual delivery before rewarding the shares. Morgan Stanley forecasts FY25 as the first full year of positive free cash flow.
The broker suspects the shares would re-rate if the business exited or sold its loss-making UK and US operations although the company has made it clear it is committed to funding the start-up loss in developing these segments.
Underweight retained. Target is reduced to $0.18 from $0.25. Industry view is Attractive.
Target price is $0.18 Current Price is $0.20 Difference: minus $0.02 (current price is over target).
If ART meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY24:
Morgan Stanley forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 2.00 cents. |
Forecast for FY25:
Morgan Stanley forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 1.00 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.90
Macquarie rates CHN as Outperform (1) -
Macquarie observes shares in Chalice Mining have fallen -42% since the release of the Gonneville scoping study, which outlined two different options. This did not integrate any underground ore sources which could materially improve the project economics, the broker adds.
Macquarie notes 97% of the underground resource at Gonneville is inferred and further definition drilling is required to integrate into the upcoming prefeasibility study.
The slump in the share price is considered an overreaction. The Outperform rating is maintained. The target drops to $3.50 from $9.20.
Target price is $3.50 Current Price is $2.90 Difference: $0.6
If CHN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 36.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -11.4, 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 N/A. |
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 13.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -8.6, 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 N/A. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates CHN as Upgrade to Neutral from Sell (3) -
Chalice Mining has outlined a scoping study for Gonneville with two large scenarios (15mtpa and 30mtpa), which was disappointing because of higher expenditure, lower grades, lower recoveries and first production envisaged two years later than UBS anticipated.
UBS expects the next round of project optimisation in the prefeasibility study will look at a smaller, higher-grade project and that may prompt a different reaction.
The broker's analysis indicates a smaller project will be more attractive and on this basis the rating is upgraded to Neutral from Sell. The target is reduced to $3 from $6.
Target price is $3.00 Current Price is $2.90 Difference: $0.1
If CHN meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $4.26, suggesting upside of 36.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
UBS forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -11.4, 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 N/A. |
Forecast for FY24:
UBS forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 4.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is -8.6, 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 N/A. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
COL COLES GROUP LIMITED
Food, Beverages & Tobacco
More Research Tools In Stock Analysis - click HERE
Overnight Price: $15.85
Macquarie rates COL as Outperform (1) -
Coles Group experienced a surge in theft between the first and second halves of FY23 and is accelerating security upgrades.
Macquarie observes the issue appears to have dragged on Coles results to a greater extent than Woolworths ((WOW)), although the latter is similarly affected, while US retailers have also indicated similar issues of rising theft.
Coles is implementing Skip Scan technology, expected to be in more than 100 stores by the end of December. Woolworths already has this in more than 600 stores.
Macquarie remains concerned that the rising cost of living will erode discretionary expenditure in the second half of 2023 and seeks relative safety in staples. Outperform rating. Target is reduced to $18.20 from $18.50.
Target price is $18.20 Current Price is $15.85 Difference: $2.35
If COL meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $16.65, suggesting upside of 5.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 58.00 cents and EPS of 74.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 74.3, implying annual growth of -11.2%. Current consensus DPS estimate is 61.4, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 21.3. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 63.00 cents and EPS of 81.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 81.3, implying annual growth of 9.4%. Current consensus DPS estimate is 66.7, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 19.5. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $20.34
Macquarie rates FMG as Underperform (5) -
Macquarie's meeting with Fortescue Metals focused on the capital allocation between iron ore, decarbonisation and shareholder returns. The company has reiterated that five major "green" projects would reach a final investment decision before the end of the year.
Macquarie observes the FY23 dividend payout ratio was 65%, envisaging downside risk given the capital competition from FFI. Amid the uncertainty over the capital commitment, the broker retains an Underperform rating and $16.40 target.
Target price is $16.40 Current Price is $20.34 Difference: minus $3.94 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.14, suggesting downside of -19.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 121.63 cents and EPS of 187.46 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 196.3, implying annual growth of N/A. Current consensus DPS estimate is 132.2, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 10.2. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 136.47 cents and EPS of 209.96 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 159.6, implying annual growth of -18.7%. Current consensus DPS estimate is 108.6, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 12.5. |
This company reports in USD. 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
UBS rates FMG as Sell (5) -
Fortescue Metals, in an analyst briefing, has explained that the removal of 10% net profit guidance for FMG Energy is a "natural evolution" as projects come into a final decision and compete on merit. The internal rate of return hurdle for metals projects is 20% or more while for energy projects it is 15%.
The company also expanded on recent leadership changes, assessing "fit" from a governance perspective was critical and a quick response was essential.
UBS remains cautious assessing prospective weakness in iron ore prices as steel production caps roll into the fourth quarter. Sell rating and $15.20 target unchanged.
Target price is $15.20 Current Price is $20.34 Difference: minus $5.14 (current price is over target).
If FMG meets the UBS target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $16.14, suggesting downside of -19.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
UBS forecasts a full year FY24 dividend of 158.97 cents and EPS of 215.96 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 196.3, implying annual growth of N/A. Current consensus DPS estimate is 132.2, implying a prospective dividend yield of 6.6%. Current consensus EPS estimate suggests the PER is 10.2. |
Forecast for FY25:
UBS forecasts a full year FY25 dividend of 82.48 cents and EPS of 113.98 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 159.6, implying annual growth of -18.7%. Current consensus DPS estimate is 108.6, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 12.5. |
This company reports in USD. 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
MQG MACQUARIE GROUP LIMITED
Wealth Management & Investments
More Research Tools In Stock Analysis - click HERE
Overnight Price: $170.21
Citi rates MQG as Neutral (3) -
Macquarie Group has updated on the FY24 outlook, signalling that asset realisations will predominantly occur in the second half rather than the first while leaving current performance metrics unchanged.
Citi suspects the current consensus cash earnings forecasts for the first half of around $1.9bn will be revised down closer to its own $1.6bn estimate. The broker remains concerned regarding the earnings risk in the second half and retains a Neutral rating.Target is $175.
Target price is $175.00 Current Price is $170.21 Difference: $4.79
If MQG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $189.88, suggesting upside of 10.5% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Citi forecasts a full year FY24 dividend of 650.00 cents and EPS of 1047.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 1075.3, implying annual growth of -20.6%. Current consensus DPS estimate is 657.4, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Forecast for FY25:
Citi forecasts a full year FY25 dividend of 650.00 cents and EPS of 1056.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 1181.4, implying annual growth of 9.9%. Current consensus DPS estimate is 704.6, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates MQG as Add (1) -
Short-term guidance by Macquarie Group was largely unchanged, according to Morgans, during a market update at a conference in Hong Kong.
Management advises asset realisations in Macquarie Asset Management will be skewed to the 2H.
The broker remains confident in the medium-term outlook and retains its Add rating.
The target price edges up to $194.40 from $193.60.
Target price is $194.40 Current Price is $170.21 Difference: $24.19
If MQG meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $189.88, suggesting upside of 10.5% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Morgans forecasts a full year FY24 dividend of 574.00 cents and EPS of 1048.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 1075.3, implying annual growth of -20.6%. Current consensus DPS estimate is 657.4, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 16.0. |
Forecast for FY25:
Morgans forecasts a full year FY25 dividend of 621.00 cents and EPS of 1140.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 1181.4, implying annual growth of 9.9%. Current consensus DPS estimate is 704.6, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 14.5. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NTD NATIONAL TYRE & WHEEL LIMITED
Transportation & Logistics
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.70
Morgans rates NTD as Hold (3) -
Despite lower FY23 revenue than expected, National Tyre & Wheel achieved a slightly higher margin outcome than Morgans anticipated, after exhibiting strong operating cost control in the 2H.
The gross margin expanded by 33bps on the previous corresponding period to 28.1%.
Despite ongoing pressure in its Consumer segment, the company is seeking to improve upon profit (NPATA) in FY24 after the 2H FY23 $6.6m contribution came in largely in line with guidance.
The broker awaits further evidence of earnings certainty and balance sheet improvement before moving up from its Hold rating. The target rises to 74c from 73c.
Target price is $0.74 Current Price is $0.70 Difference: $0.045
If NTD meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Morgans forecasts a full year FY24 dividend of 0.00 cents and EPS of 7.14 cents. |
Forecast for FY25:
Morgans forecasts a full year FY25 dividend of 4.11 cents and EPS of 8.65 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.88
Macquarie rates ORA as No Rating (-1) -
Orora will acquire Saverglass for -$2.16bn, which will mean it operates further up the packaging value chain and moves into a higher "product-to-pack" segment, Macquarie notes.
The Saverglass business operates across a diverse customer and geographic base and has a 33% market share of the global premium-plus spirits market.
The broker reduces estimates for FY24 EPS by -5% to reflect the timing of new shares on issue ($1.34bn in equity being raised) and expected completion of the acquisition at the end of 2023. Macquarie is on research restrictions and cannot advise a valuation or rating.
Current Price is $2.88. Target price not assessed.
Current consensus price target is $3.61, suggesting upside of 29.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 16.90 cents and EPS of 22.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.9, implying annual growth of 4.5%. Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 19.40 cents and EPS of 25.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.0, implying annual growth of 9.2%. Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 11.1. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgans rates ORA as Downgrade to Hold from Add (3) -
Morgans highlights the acquisition of Saverglass for -$2.2bn comes with both execution and integration risks and forecasts the transaction will be 5% EPS in FY25 and 9% accretive in the third year (FY27) of full ownership.
The size of the deal creates heightened risks to Orora's future earnings growth, and, after incorporating the $1.35bn equite raise, the broker downgrades its rating to Hold from Add. The target falls to $3.00 from $4.05.
After allowing for synergies, management is targeting EPS accretion of mid-single digits in FY25, which the analyst considers modest.
France-based Saverglass manafactures premium and ultra-premium glass bottles, servicing luxury spirits and wine producers globally.
Target price is $3.00 Current Price is $2.88 Difference: $0.12
If ORA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).
Current consensus price target is $3.61, suggesting upside of 29.9% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Morgans forecasts a full year FY24 dividend of 17.50 cents and EPS of 23.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 22.9, implying annual growth of 4.5%. Current consensus DPS estimate is 17.4, implying a prospective dividend yield of 6.3%. Current consensus EPS estimate suggests the PER is 12.1. |
Forecast for FY25:
Morgans forecasts a full year FY25 dividend of 19.50 cents and EPS of 25.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 25.0, implying annual growth of 9.2%. Current consensus DPS estimate is 19.3, implying a prospective dividend yield of 6.9%. Current consensus EPS estimate suggests the PER is 11.1. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.74
Bell Potter rates PBH as Buy (1) -
Regarding the sold US business, Bell Potter lowers its target for PointsBet Holdings to $1.08 from $2.10 after updating for shares going ex entitlement for the initial $1.00/share capital distribution, which will occur on September 22.
The lower target also reflects an increase in shares on issue.
The brokers $1.08 target incorporates 42c for the second and final capital distribution, 48c for the Australian business and 8c for the Canadian business. Buy.
Target price is $1.08 Current Price is $0.74 Difference: $0.34
If PBH meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 14.00 cents. |
Forecast for FY25:
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 7.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.71
Macquarie rates PLL as Outperform (1) -
Piedmont Lithium's joint venture partner at Ewoyaa has assays for 6,150metres of infill and exploration RC drilling which have confirmed mineralisation extension at South-2 and North-East deposits.
As production at North American Lithium ramps up, the broker expects the company will start generating strong cash flow from the offtake and this should help it fund share of the Ewoyaa project and the Tennessee lithium hydroxide plant.
Outperform rating and $1.80 target maintained.
Target price is $1.80 Current Price is $0.71 Difference: $1.09
If PLL meets the Macquarie target it will return approximately 154% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 9.00 cents. |
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 25.60 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.38
Ord Minnett rates STX as Hold (3) -
Strike Energy will acquire Talon Energy, its joint venture partner in Walyering, via an all-scrip deal. The latter will de-merge its Mongolian asset to the benefit of existing shareholders although the scheme with Strike Energy is not conditional upon this occurring.
Ord Minnett believes the deal makes sense as it simplifies ownership and facilitates an increased pace in Perth Basin gas development. The broker retains a $0.45 target and Hold rating.
Target price is $0.45 Current Price is $0.38 Difference: $0.07
If STX meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $0.54, suggesting upside of 38.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.70 cents. 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 N/A. |
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 0.5, 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 78.0. |
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $5.58
Ord Minnett rates TPG as Accumulate (2) -
Ord Minnett does not infer anything from the extension of due diligence to October 4 for the possible sale of TPG Telecom's non-mobile fibre assets.
The broker believes, for a potential price tag of $6.3bn, it is fair that Vocus requires more time to assess the transaction.
The pace of earnings recovery is considered encouraging for the consumer unit as an 8% lift in mobile service revenue in the June half pushed service revenue share to 14.1%. The broker retains an Accumulate rating and $7.40 target.
Target price is $7.40 Current Price is $5.58 Difference: $1.82
If TPG meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).
Current consensus price target is $6.18, suggesting upside of 11.3% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Ord Minnett forecasts a full year FY23 dividend of 18.00 cents and EPS of 13.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.1, implying annual growth of -41.7%. Current consensus DPS estimate is 18.5, implying a prospective dividend yield of 3.3%. Current consensus EPS estimate suggests the PER is 34.5. |
Forecast for FY24:
Ord Minnett forecasts a full year FY24 dividend of 19.00 cents and EPS of 17.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.0, implying annual growth of 18.0%. Current consensus DPS estimate is 20.7, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 29.2. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TYR TYRO PAYMENTS LIMITED
Business & Consumer Credit
More Research Tools In Stock Analysis - click HERE
Overnight Price: $1.38
Morgan Stanley rates TYR as Equal-weight (3) -
The FY23 results exceeded Morgan Stanley's expectations while trading at the start of FY24 is slower. Importantly, free cash flow has turned positive. The company has undertaken a commitment to investors to focus on improving profitability and free cash flow.
The main issue for the broker is what the sustainable EBITDA margin is for a small operator in a very competitive space. FY24 EBITDA guidance of $52-58m implies a 26% margin on gross profit. Equal-Weight and $1.60 target maintained. Industry view: Attractive.
Target price is $1.60 Current Price is $1.38 Difference: $0.225
If TYR meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $1.94, suggesting upside of 44.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Morgan Stanley forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 1.2, implying annual growth of 3.4%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 111.7. |
Forecast for FY25:
Morgan Stanley forecasts a full year FY25 EPS of 2.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 3.1, implying annual growth of 158.3%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 43.2. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WTC WISETECH GLOBAL LIMITED
Transportation & Logistics
More Research Tools In Stock Analysis - click HERE
Overnight Price: $69.73
Morgan Stanley rates WTC as Overweight (1) -
Morgan Stanley flags WiseTech Global as a leading software provider to the global freight forwarding industry with penetration of just 20-40%. The broker has lifted forecasts for growth in revenue to 23% from FY23-28 after the recent results.
There is one component of the outlook which the broker believes has received little attention, and that is the boost from ongoing M&A activity in the industry. The broker envisages potential for an incremental $110-240m in revenue by FY28.
Target is raised to $85 from $70. Overweight. Industry View: Attractive.
Target price is $85.00 Current Price is $69.73 Difference: $15.27
If WTC meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).
Current consensus price target is $79.53, suggesting upside of 14.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Morgan Stanley forecasts a full year FY24 dividend of 19.60 cents and EPS of 87.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 82.8, implying annual growth of 27.8%. Current consensus DPS estimate is 16.1, implying a prospective dividend yield of 0.2%. Current consensus EPS estimate suggests the PER is 84.1. |
Forecast for FY25:
Morgan Stanley forecasts a full year FY25 dividend of 28.10 cents and EPS of 124.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 106.7, implying annual growth of 28.9%. Current consensus DPS estimate is 20.5, implying a prospective dividend yield of 0.3%. Current consensus EPS estimate suggests the PER is 65.2. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $122.23
UBS rates XRO as Buy (1) -
UBS is confident regarding the ability of Xero to deliver earnings and cash flow growth over the next three years based on app download data.
Price rises have been implemented in core markets and the November results should be another catalyst, providing clarity around the medium-term growth strategy.
The broker raises FY24-26 revenue estimates by an average 6% and free cash flow by 18%. There is even more upside to forecasts anticipated should there be increased focus on growing strategic pillars.
UBS reiterates a Buy rating. Target is raised to $143.50 from $117.70.
Target price is $143.50 Current Price is $122.23 Difference: $21.27
If XRO meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $117.57, suggesting downside of -3.7% (ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
UBS forecasts a full year FY24 dividend of 0.00 cents and EPS of 82.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 91.2, 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 133.9. |
Forecast for FY25:
UBS forecasts a full year FY25 dividend of 0.00 cents and EPS of 133.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 148.3, implying annual growth of 62.6%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 82.3. |
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
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
ART | Airtasker | $0.20 | Morgan Stanley | 0.18 | N/A | - |
CHN | Chalice Mining | $3.13 | Macquarie | 3.50 | 9.20 | -61.96% |
UBS | 3.00 | 6.00 | -50.00% | |||
COL | Coles Group | $15.86 | Macquarie | 18.20 | 18.50 | -1.62% |
MQG | Macquarie Group | $171.80 | Morgans | 194.40 | 193.60 | 0.41% |
NHC | New Hope | $5.84 | Macquarie | 4.30 | 4.40 | -2.27% |
NTD | National Tyre & Wheel | $0.70 | Morgans | 0.74 | 0.73 | 1.37% |
ORA | Orora | $2.78 | Macquarie | N/A | 3.95 | -100.00% |
Morgans | 3.00 | 4.05 | -25.93% | |||
PBH | PointsBet Holdings | $0.77 | Bell Potter | 1.08 | 2.10 | -48.57% |
WTC | WiseTech Global | $69.62 | Morgan Stanley | 85.00 | 70.00 | 21.43% |
XRO | Xero | $122.10 | UBS | 143.50 | 117.70 | 21.92% |
Summaries
A11 | Atlantic Lithium | Outperform - Macquarie | Overnight Price $0.41 |
ARB | ARB Corp | Buy - Ord Minnett | Overnight Price $32.76 |
ART | Airtasker | Underweight - Morgan Stanley | Overnight Price $0.20 |
CHN | Chalice Mining | Outperform - Macquarie | Overnight Price $2.90 |
Upgrade to Neutral from Sell - UBS | Overnight Price $2.90 | ||
COL | Coles Group | Outperform - Macquarie | Overnight Price $15.85 |
FMG | Fortescue Metals | Underperform - Macquarie | Overnight Price $20.34 |
Sell - UBS | Overnight Price $20.34 | ||
MQG | Macquarie Group | Neutral - Citi | Overnight Price $170.21 |
Add - Morgans | Overnight Price $170.21 | ||
NTD | National Tyre & Wheel | Hold - Morgans | Overnight Price $0.70 |
ORA | Orora | No Rating - Macquarie | Overnight Price $2.88 |
Downgrade to Hold from Add - Morgans | Overnight Price $2.88 | ||
PBH | PointsBet Holdings | Buy - Bell Potter | Overnight Price $0.74 |
PLL | Piedmont Lithium | Outperform - Macquarie | Overnight Price $0.71 |
STX | Strike Energy | Hold - Ord Minnett | Overnight Price $0.38 |
TPG | TPG Telecom | Accumulate - Ord Minnett | Overnight Price $5.58 |
TYR | Tyro Payments | Equal-weight - Morgan Stanley | Overnight Price $1.38 |
WTC | WiseTech Global | Overweight - Morgan Stanley | Overnight Price $69.73 |
XRO | Xero | Buy - UBS | Overnight Price $122.23 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 9 |
2. Accumulate | 1 |
3. Hold | 6 |
5. Sell | 3 |
Thursday 07 September 2023
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
1 |
The Market In Numbers – 9 Nov 2024Nov 09 2024 - Australia |
2 |
ASX Winners And Losers Of Today – 08-11-24Nov 08 2024 - Daily Market Reports |
3 |
FNArena Corporate Results Monitor – 08-11-2024Nov 08 2024 - Australia |
4 |
Next Week At A Glance – 11-15 Nov 2024Nov 08 2024 - Weekly Reports |
5 |
Weekly Top Ten News Stories – 8 November 2024Nov 08 2024 - Weekly Reports |