Daily Market Reports | Mar 20 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.
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)
ANZ ARU AVH BEN BHP BOQ CBA CIA CRD CXO DRE DRR FMG GNP HAS ILU LBL LYC MIN MTS NAB PEK RIO RMY VML WBC XRO
RMY RMA GLOBAL LIMITED
Real Estate - Overnight Price: $0.13
Bell Potter rates ((RMY)) as Speculative Buy (1) -
A change in research analyst and an increase in Bell Potter's assumed weighted average cost of capital (WACC) combine to lower the broker's target for RMA Global to 20c from 36c.
The new analyst sees a significant opportunity in the US as there are around 26 times the number of real estate agents by comparison to Australia.
As a reminder, RMA Global owns a digital marketing and data platform for real estate agents that collects and promotes reviews generated from real estate transactions. The platform is monetised via subscriptions and advertising fees.
Bell Potter's Speculative Buy thesis is also founded on a growing revenue per claimed profile in the US, and an early-stage US claimed profile market penetration of 26.6%.
This report was published on March 10, 2023.
Target price is $0.20 Current Price is $0.13 Difference: $0.07
If RMY meets the Bell Potter target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.00.
Forecast for FY24:
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 32.50.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
VML VITAL METALS LIMITED
Rare Earth Minerals - Overnight Price: $0.02
Canaccord Genuity rates ((VML)) as Speculative Buy (1) -
While Tesla has been hinting at rare-earth-free permanent magnets for its next generation electric vehicle models, Canaccord Genuity forecasts such a move would have little impact on its long-term NdPr price outlook.
The broker expects rare earth magnets will continue to power a large percentage of future electric vehicles, and the recent sell off in the Rare Earths sector should be considered a buying opportunity.
The Speculative Buy rating and 6c target for Vital Metals are unchanged.
This report was published on March 8, 2023.
Target price is $0.06 Current Price is $0.02 Difference: $0.039
If VML meets the Canaccord Genuity target it will return approximately 186% (excluding dividends, fees and charges).
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
WBC WESTPAC BANKING CORPORATION
Banks - Overnight Price: $21.24
Jarden rates ((WBC)) as Underweight (4) -
Jarden believes the mortgage 'loyalty tax' that has traditionally favoured major Australian banks may be under threat.
In an increasingly competitive environment, the broker notes a swing towards customer retention by banks that includes offering large discounts to existing borrowers. The rise of technology solutions for borrowers (eg Stay-or-Go) are also impacting.
The analysts see the greatest risk of falling margins at CommBank and Westpac, while ANZ Bank is least exposed to mortgages.
The Underweight rating and $23.80 target are retained for Westpac.
This report was published on March 7, 2023.
Target price is $23.80 Current Price is $21.24 Difference: $2.56
If WBC meets the Jarden target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $26.20, suggesting upside of 23.4%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 137.00 cents and EPS of 203.00 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 10.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 211.9, implying annual growth of 32.5%.
Current consensus DPS estimate is 138.2, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 10.0.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 147.00 cents and EPS of 208.80 cents.
At the last closing share price the estimated dividend yield is 6.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.17.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 213.4, implying annual growth of 0.7%.
Current consensus DPS estimate is 145.6, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 10.0.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
XRO XERO LIMITED
Accountancy - Overnight Price: $89.47
Goldman Sachs rates ((XRO)) as Buy (1) -
Goldman Sachs raises its FY24-26 earnings (EBITDA) forecasts by 9-17% following Xero's announcement on reducing its global headcount. The company also provided FY24 opex guidance based on 75% of revenue.
The announcement makes clear the new ceo's priorities in terms of scaling versus profitable growth, comments the analyst, and also highlights the scale and earnings potential of the business.
The broker remains confident on the revenue outlook given the company's strong pricing. It's also noted structural industry tailwinds are driving cloud accounting adoption globally.
This report was published on March 10, 2023.
Target price is $115.00 Current Price is $89.47 Difference: $25.53
If XRO meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $89.59, suggesting upside of 0.1%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 19.13 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 467.67.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 24.1, 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 371.2.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 71.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 125.91.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 87.7, implying annual growth of 263.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 102.0.
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
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