Daily Market Reports | Mar 24 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)
A4N ACL APE BML BXB COD CXL ERD GTK HLS HSN IFM LRS MCR (2) PAN PDI RMS RRL SHV (2) SIG STA STN TBN (2) WES
A4N ALPHA HPA LIMITED
Aluminium, Bauxite & Alumina - Overnight Price: $0.66
Bell Potter rates ((A4N)) as Speculative Buy (1) -
Alpha HPA has announced an agreement with a global technology partner enabling the manufacture of sapphire glass, used in LED lighting, optics and consumer electronic manufacturing.
The sapphire glass will be manufactured at the company's high-purity alumina products (HPA) project, named HPA First, located in Gladstone.
The volume of the company's HPA which will be value added into sapphire glass has not been disclosed, though Bell Potter points out even small volumes could provide a material improvement to revenues.
The Buy rating and $1.02 target are maintained.
This report was published on March 24, 2023.
Target price is $1.02 Current Price is $0.66 Difference: $0.365
If A4N meets the Bell Potter target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 131.00.
Forecast for FY23:
Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 72.78.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ACL AUSTRALIAN CLINICAL LABS LIMITED
Healthcare services - Overnight Price: $3.79
Goldman Sachs rates ((ACL)) as Neutral (3) -
Australian Clinical Labs reported a -33% revenue decline over the first half to $360m, and while a -4% miss to Goldman Sachs's forecasts, the broker points out covid-related revenues declined -83% year-on-year while non-covid revenues lifted 2%.
The broker feels it is worth pointing out the composition of the result, given a the trajectory and profitability of Australian Clinical Labs' core business has long been a key investor debate.
The Neutral rating and target price of $3.30 are retained.
This report was published on March 21, 2023.
Target price is $3.30 Current Price is $3.79 Difference: minus $0.49 (current price is over target).
If ACL meets the Goldman Sachs target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 EPS of 20.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.95.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 19.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.95.
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: $13.35
Bell Potter rates ((APE)) as Upgrade to Buy from Hold (1) -
Bell Potter upgrades its rating for Eagers Automotive to Buy from Hold on valuation after making minor forecast changes relating to the joint venture with the Australian distributor of BYD electric vehicles.
In support of the upgrade, the broker notes potential catalysts in the form of increased sales of BYD vehicles over the coming month, the successful transfer/sale of Scotts Refrigerated Logistics warehouses to new tenants and further acquisitions.
The $15.25 target price is maintained.
This report was published on March 24, 2023.
Target price is $15.25 Current Price is $13.35 Difference: $1.9
If APE meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $14.68, suggesting upside of 8.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Bell Potter forecasts a full year FY23 dividend of 71.00 cents and EPS of 115.80 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.53.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 113.9, implying annual growth of -6.1%.
Current consensus DPS estimate is 69.3, implying a prospective dividend yield of 5.1%.
Current consensus EPS estimate suggests the PER is 11.9.
Forecast for FY24:
Bell Potter forecasts a full year FY24 dividend of 71.00 cents and EPS of 105.90 cents.
At the last closing share price the estimated dividend yield is 5.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.61.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 102.7, implying annual growth of -9.8%.
Current consensus DPS estimate is 65.9, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 13.2.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BML BOAB METALS LIMITED
Mining - Overnight Price: $0.19
Shaw and Partners rates ((BML)) as Buy (1) -
Front end engineering and design for Boab Metals' Sorby Hills project has commenced following the recent definitive feasibility study release. Shaw and Partners considers Sorby Hills one of the best base metals projects of emerging ASX-listed resource companies.
The definitive feasibility study saw the measured resource increase 78% and iron ore reserves increase 12%. Boab Metals is now working to finalise binding offtake agreements.
Shaw and Partners expects the stock to re-rate as agreements are signed and finance milestones met.
The Buy rating and target price of $0.75 are retained.
This report was published on March 21, 2023.
Target price is $0.75 Current Price is $0.19 Difference: $0.56
If BML meets the Shaw and Partners target it will return approximately 295% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 2.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.26.
Forecast for FY24:
Shaw and Partners forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.70 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.14.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BXB BRAMBLES LIMITED
Transportation & Logistics - Overnight Price: $13.33
Jarden rates ((BXB)) as Overweight (2) -
Jarden suggests the overall price/cost environment is becoming increasingly positive for Brambles and inventory levels are falling, consistent with recent de-stocking commentary.
Freight and diesel costs are normalising while food and beverage inventory growth continues, explains the broker.
Importantly, the spread between lumber input costs and wooden pallet pricing is at a record level, which the analyst notes is providing a growing tailwind into the 2H.
The Overweight rating and $13.15 target are maintained.
This report was published on March 21, 2023.
Target price is $13.15 Current Price is $13.33 Difference: minus $0.18 (current price is over target).
If BXB meets the Jarden target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $14.09, suggesting upside of 6.1%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 EPS of 69.43 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.20.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 80.8, implying annual growth of N/A.
Current consensus DPS estimate is 42.5, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 16.4.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 71.91 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 88.1, implying annual growth of 9.0%.
Current consensus DPS estimate is 47.4, implying a prospective dividend yield of 3.6%.
Current consensus EPS estimate suggests the PER is 15.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE
