Daily Market Reports | Feb 02 2023
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.
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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 AFP AND ARV AX1 (3) B4P BRG CIP CLU CSS DSK DTC EM2 GL1 IFL ILU LRK M7T MIN (3) MMM OCA PME PPG PPT RMD RPL RRL (2) SHV SNZ TNE TRJ WDS WSP WTC (2) ZIP
ADH ADAIRS LIMITED
Furniture & Renovation - Overnight Price: $2.92
Goldman Sachs rates ((ADH)) as Downgrade to Neutral from Buy (3) -
Goldman Sachs proudly states notes Adairs has rallied 34.3% since they initiated a Buy rating on September 8, 2022.
In light of the share price move, the analyst considers the stock is more fully valued and would like to see a recovery in margins from Mocka, and growth in store roll-outs from Focus, before becoming more positive on the longer term outlook.
In the near term management has reiterated FY23 guidance.
The target price is raised to $3.15 from $2.65 adjusting for a mark-to-market valuation.
The rating is lowered to Neutral from Buy with an 18.5x PE valuation providing only 12% upside.
This report was published on January 26, 2023.
Target price is $3.15 Current Price is $2.92 Difference: $0.23
If ADH meets the Goldman Sachs target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $2.78, suggesting downside of -3.0%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 17.00 cents and EPS of 29.00 cents.
At the last closing share price the estimated dividend yield is 5.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 29.3, implying annual growth of 11.1%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.8.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 20.00 cents and EPS of 33.00 cents.
At the last closing share price the estimated dividend yield is 6.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.85.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 32.4, implying annual growth of 10.6%.
Current consensus DPS estimate is 21.0, implying a prospective dividend yield of 7.3%.
Current consensus EPS estimate suggests the PER is 8.9.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AFP AFT PHARMACEUTICALS LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $3.35
Jarden rates ((AFP)) as Downgrade to Neutral from Overweight (3) -
Jarden reassesses the prospects for AFT Pharmaceuticals in light of the international expansion objectives for the company.
The analyst points to an additional 76 products in the A&NZ market over the next three years, reflecting a forecast ongoing compound revenue growth rate ot 12% from FY22 to FY27, although additional investment will be required.
Management indicated a slowly rollout in 1H23 results for other countries, missing market expectations again.
The broker reduces EBIT forecasts by -33% and -20% for FY23 and FY24, respectively.
The rating is downgraded to Neutral from Buy and the target is adjusted lower to NZ$3.80 from NZ$4.80.
This report was published on January 27, 2023.
Current Price is $3.35. Target price not assessed.
The company's fiscal year ends in March.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 2.74 cents and EPS of 11.23 cents.
At the last closing share price the estimated dividend yield is 0.82%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 29.84.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 5.48 cents and EPS of 18.99 cents.
At the last closing share price the estimated dividend yield is 1.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.65.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AND ANSARADA GROUP LIMITED
Software & Services - Overnight Price: $1.38
Moelis rates ((AND)) as Upgrade to Buy from Hold (1) -
Ansarada Group provided the 1Q23 trading update with no revenue growth over the period, compared to 1H23 revenues beating Moelis' expectations.
On balance, the broker views the results in the context of the depressed M&A market with pressure on volumes to remain over the short term.
Growth in government tenders as well as insolvency and compliance work is expected over FY23. The balance sheet with $19m cash-on-hand and the company's platform are viewed as robust enough to work through the cycle.
The rating is upgraded to a Buy from a Hold and the target is adjusted to $1.72 from $1.82
This report was published on February 27, 2023.
Target price is $1.72 Current Price is $1.38 Difference: $0.34
If AND meets the Moelis target it will return approximately 25% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 9.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.68.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 7.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.17.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARV ARTEMIS RESOURCES LIMITED
Mining - Overnight Price: $0.03
Jarden rates ((ARV)) as Downgrade to Neutral from Overweight (3) -
In a review of its retirement village sector, Jarden points out that its twelve-month targets reflect upside from resolution of issues. Sentiment for the sector remains weak, and Jarden retains its underweight outlook given long-dated cash flows and high sensitivity to small assumption changes.
Compared to competitors, Artemis Resources does not have a long development track record. With the company in the early stages of repositioning its business, Jarden sees upside in it proving up execution on development.
The rating is downgraded to Neutral from Overweight and the target price increases to NZ$1.73 from NZ$1.50.
This report was published on January 25, 2023.
Current Price is $0.03. Target price not assessed.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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