Daily Market Reports | May 26 2023
An additional news report on the recommendation, valuation, forecast and opinion changes and updates for ASX-listedequities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.
One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)
29M APM BGA CCX FPH GTK(2) IEL INA ING IPH JLG LEL LIC MGH NWC OBL OFX PDI QAL QAN RBL SGM TNE(2) TWE
SGM SIMS LIMITED
Steel & Scrap - Overnight Price: $14.15
Jarden rates ((SGM)) as Neutral (3) -
Jarden observes domestic economic issues continue to weigh on Turkish scrap prices. The broker does not expect a change in government to lead to an immediate improvement in the macro backdrop.
After discussions with Sims the broker notes the company feels secure in its sales to Turkish customers as they are mostly contracted in US dollars with payments guaranteed by bank issued letters of credit.
In other areas, sale proceeds from non-core divestments and an appropriately conservative balance sheet should assist in funding the company's FY25 volume ambitions, in Jarden's view. Neutral rating and $16.60 target retained.
This report was published on May 22, 2023.
Target price is $16.60 Current Price is $14.15 Difference: $2.45
If SGM meets the Jarden target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $14.90, suggesting upside of 5.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 28.70 cents and EPS of 75.90 cents.
At the last closing share price the estimated dividend yield is 2.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.64.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 77.5, implying annual growth of -74.4%.
Current consensus DPS estimate is 33.0, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 18.2.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 26.40 cents and EPS of 88.10 cents.
At the last closing share price the estimated dividend yield is 1.87%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 97.0, implying annual growth of 25.2%.
Current consensus DPS estimate is 31.8, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 14.5.
Market Sentiment: -0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TNE TECHNOLOGY ONE LIMITED
IT & Support - Overnight Price: $16.30
Goldman Sachs rates ((TNE)) as Neutral (3) -
First half results from TechnologyOne were in line with expectations. Pre-tax profit growth guidance of 10-15% appears conservative to Goldman Sachs given the top line outlook and margin expansion.
The broker assesses the business is executing well and improving its underlying growth rate while expanding its margins. The mission-critical ERP systems and defensive public sector end markets provide valuable earnings visibility, Goldman Sachs adds.
Neutral rating maintained. Target rises to $16.25 from $15.00.
This report was published on May 23, 2023.
Target price is $16.25 Current Price is $16.30 Difference: minus $0.05 (current price is over target).
If TNE meets the Goldman Sachs target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $14.84, suggesting downside of -9.9%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 19.40 cents and EPS of 31.20 cents.
At the last closing share price the estimated dividend yield is 1.19%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 52.24.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.7, implying annual growth of 11.6%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 53.7.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 23.50 cents and EPS of 37.80 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 43.12.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 34.8, implying annual growth of 13.4%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 47.4.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((TNE)) as Overweight (1) -
Wilsons assesses TechnologyOneis continuing to execute on its strategy of growing core business, investing in emerging geographies and expanding its products through R&D investment.
A "solid" first half has set the company up for a strong year and the broker upgrades FY24 and FY25 estimates. The medium-term target of surpassing SaaS recurring revenue of $500m continues to become more and more realistic.
Wilsons retains an Overweight rating based on the track record and raises the target to $18.12 from $14.25.
This report was published on May 24, 2023.
Target price is $18.12 Current Price is $16.30 Difference: $1.82
If TNE meets the Wilsons target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $14.84, suggesting downside of -9.9%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 18.40 cents and EPS of 31.70 cents.
At the last closing share price the estimated dividend yield is 1.13%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 51.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 30.7, implying annual growth of 11.6%.
Current consensus DPS estimate is 18.1, implying a prospective dividend yield of 1.1%.
Current consensus EPS estimate suggests the PER is 53.7.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 19.90 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 1.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 42.89.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 34.8, implying annual growth of 13.4%.
Current consensus DPS estimate is 20.4, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 47.4.
Market Sentiment: -0.1
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
TWE TREASURY WINE ESTATES LIMITED
Food, Beverages & Tobacco - Overnight Price: $11.76
Goldman Sachs rates ((TWE)) as Buy (1) -
Goldman Sachs revises down FY23-25 sales estimates by -2-4% upon reviewing the latest trends.
The broker highlights a weaker Chinese wine market in the second half to date, noting cash-challenged distributors are liquidating high-quality imported wine at low prices.
The broker remains conservative about Penfolds forecasts.The Buy rating is maintained in the target is lowered to $14.50 from $14.70.
This report was published on May 23, 2023.
Target price is $14.50 Current Price is $11.76 Difference: $2.74
If TWE meets the Goldman Sachs target it will return approximately 23% (excluding dividends, fees and charges).
Current consensus price target is $13.23, suggesting upside of 13.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 36.00 cents and EPS of 50.00 cents.
At the last closing share price the estimated dividend yield is 3.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 48.2, implying annual growth of 32.2%.
Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 24.2.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 39.00 cents and EPS of 56.00 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 54.6, implying annual growth of 13.3%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 21.3.
Market Sentiment: 0.5
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
