Daily Market Reports | Sep 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)
A2M ALQ BMN CGC (2) FPH IEL LOT MTS ORI (2) PRU RED SM1 SPZ
BMN BANNERMAN ENERGY LIMITED
Uranium - Overnight Price: $2.53
Canaccord Genuity rates ((BMN)) as Initiation of coverage with Speculative Buy (1) -
Bannerman Energy is developing the Etango uranium project in Namibia and Canaccord Genuity initiates coverage with a Speculative Buy rating and $3.33 target.
The broker observes the market is starting to witness the first wave of mine re-starts but is confronted by a -30mlb deficit.
After a decade of underinvestment and material closures such as Ranger and Cominak, the primary supply of uranium is at a 12-year low.
Security of supply and the need for contracting to facilitate development of new mines has been brought to the fore, and recent polling, as well as anecdotal evidence, signal a flurry of contracts have been initiated over the last nine months.
This report was published on September 19, 2023.
Target price is $3.33 Current Price is $2.53 Difference: $0.8
If BMN meets the Canaccord Genuity target it will return approximately 32% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 7.06 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 35.82.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 6.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 38.26.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CGC COSTA GROUP HOLDINGS LIMITED
Agriculture - Overnight Price: $2.86
Jarden rates ((CGC)) as Overweight (2) -
Costa Group has received a lower and final offer from Paine Schwartz Partners at $3.20 a share. Jarden envisages a high probability of the deal proceeding despite the reduction from $3.50, owing to significant downside post the recent update on the company's outlook and weaker domestic pricing in recent weeks.
The broker continues to believe PSP can extract material synergies with respect to technology, genetics and general expertise in agriculture which, coupled with the Costa landholding, creates an attractive proposal. The broker retains an Overweight rating and $3.08 target.
This report was published on September 18, 2023.
Target price is $3.08 Current Price is $2.86 Difference: $0.22
If CGC meets the Jarden target it will return approximately 8% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Jarden forecasts a full year FY23 EPS of 3.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 79.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 5.5, implying annual growth of -24.0%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 52.4.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 7.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 40.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.6, implying annual growth of 110.9%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.8.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Wilsons rates ((CGC)) as Market Weight (3) -
Paine Schwartz Partners has downwardly revised its offer for Costa Group to $3.20 a share from $3.50 a share, reducing this for any permitted dividend of up to 4c, if declared. The former has also indicated this is the best and final price.
Costa Group is considering the revised offer and will continue to engage regarding terms and conditions. Wilsons observes a reduction in the bid price reflects the recent earnings downgrade and still implies a premium of 45% to the share price prior to PSP acquiring its 14% stake in October 2022.
The broker assesses, while the company has invested in a significant expansion of its productive asset base over the past five years the incremental return on capital has been disappointing. Market Weight retained. Target is $3.05.
This report was published on September 18, 2023.
Target price is $3.05 Current Price is $2.86 Difference: $0.19
If CGC meets the Wilsons target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $3.03, suggesting upside of 5.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 22.20 cents and EPS of 15.20 cents.
At the last closing share price the estimated dividend yield is 7.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.82.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 5.5, implying annual growth of -24.0%.
Current consensus DPS estimate is 7.6, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 52.4.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 15.00 cents and EPS of 17.40 cents.
At the last closing share price the estimated dividend yield is 5.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.44.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 11.6, implying annual growth of 110.9%.
Current consensus DPS estimate is 8.9, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 24.8.
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FPH FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
Medical Equipment & Devices - Overnight Price: $20.20
Jarden rates ((FPH)) as Neutral (3) -
Jarden found the visit to the Mexican manufacturing facility educational, noting Fisher & Paykel Healthcare's management is confident in returning to the targeted long-term gross margin of 65%.
No new therapies or product expansions were announced and nasal high flow (NHF) remains the key consumables growth driver.
The sales force access to hospitals is now back to normal and the company is working with physicians to educate on the wider and less severe use cases for NHF, establishing hospital-specific protocols to ensure ongoing use. Neutral retained.Target is NZ$23.00.
This report was published on September 18, 2023.
Current Price is $20.20. Target price not assessed.
Current consensus price target is $21.00, suggesting upside of 4.6%(ex-dividends)
The company's fiscal year ends in March.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 38.21 cents and EPS of 40.06 cents.
At the last closing share price the estimated dividend yield is 1.89%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.43.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 39.8, implying annual growth of N/A.
Current consensus DPS estimate is 34.6, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 50.4.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 39.13 cents and EPS of 53.87 cents.
At the last closing share price the estimated dividend yield is 1.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 37.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 50.4, implying annual growth of 26.6%.
Current consensus DPS estimate is 37.2, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 39.8.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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