Daily Market Reports | Sep 25 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)
BOQ BPT CVN CWY EDV FSF GSS KAR KMD (2) LIC ORI PDI PMV SPR STO WDS
GSS GENETIC SIGNATURES LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.51
Taylor Collison rates ((GSS)) as Outperform (2) -
Genetic Signatures has submitted an application for US FDA clearance for marketing its EasyScreen gastrointestinal parasite detection kit.
Taylor Collison likes the fact the molecular testing for gastrointestinal pathogens is already reimbursed in the US and the kit replaces low-value, microscope-based testing.
The broker will review pricing assumptions post the FDA clearance and highlights the risk that additional funds may be required in FY24 or FY25.
Outperform rating maintained. Target is $2.19.
This report was published on September 12, 2023.
Target price is $2.19 Current Price is $0.51 Difference: $1.685
If GSS meets the Taylor Collison target it will return approximately 334% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 8.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.16.
Forecast for FY25:
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 3.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.43.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
KAR KAROON ENERGY LIMITED
Crude Oil - Overnight Price: $2.50
Jarden rates ((KAR)) as Upgrade to Buy from Overweight (1) -
Recent action by OPEC-Plus to cut production has achieved the objectives of bringing supply/demand into balance and increasing prices to above US$90/bbl. Jarden increases Brent oil price forecasts which are partially offset by -4% reduction in forecast LNG prices.
Karoon Energy is the key beneficiary on the local bourse of the recent spike in oil prices as it coincides with higher oil production. Jarden upgrades to Buy from Overweight and lifts the target to $3.00 from $2.50.
This report was published on September 21, 2023.
Target price is $3.00 Current Price is $2.50 Difference: $0.5
If KAR meets the Jarden target it will return approximately 20% (excluding dividends, fees and charges).
Current consensus price target is $2.87, suggesting upside of 16.5%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 10.00 cents and EPS of 49.40 cents.
At the last closing share price the estimated dividend yield is 4.00%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 77.0, 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 3.2.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 8.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 3.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.58.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 60.3, implying annual growth of -21.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 4.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
KMD KMD BRANDS LIMITED
Sports & Recreation - Overnight Price: $0.79
Canaccord Genuity rates ((KMD)) as Hold (3) -
Canaccord Genuity remains constructive about the medium-term strategy and growth options for KMD Brands yet retains a Hold rating given near-term uncertainty.
The business appears to have navigated recent "tricky" months quite well, although the broker suspects around $20-40m of incremental Kathmandu sales were missed as a result of weak winter trading. In addition, the unwinding of working capital was also the "hope" over FY23 which did not happen.
Canaccord Genuity awaits more evidence for FY24 of an improved like-for-like performance and expects a more material step up in earnings into FY25. Target is reduced to $0.79 from $0.94.
This report was published on September 21, 2023.
Target price is $0.79 Current Price is $0.79 Difference: $0.005
If KMD meets the Canaccord Genuity target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $0.80, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in July.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 5.53 cents and EPS of 6.45 cents.
At the last closing share price the estimated dividend yield is 7.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.17.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.1, implying annual growth of N/A.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.0.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 6.45 cents and EPS of 8.29 cents.
At the last closing share price the estimated dividend yield is 8.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.47.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.8, implying annual growth of 23.9%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 10.6%.
Current consensus EPS estimate suggests the PER is 8.9.
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
Jarden rates ((KMD)) as Buy (1) -
KMD Brands revealed a material slowdown in activity occurred in the seasonally important fourth quarter while underlying EBITDA of NZ$105.9m for FY23 was in line with expectations.
Jarden notes group sales are down -6.4% for August with Kathmandu the key source of weakness. Going forward, wholesale markets appear tough as participants look to de-stock.
The broker points out, should consumers sales proof more resilient, additional mid-season purchases could occur that are typically higher margin for the business.
The company has reiterated its medium-term underlying EBITDA margin target of 15%. Jarden believes caution is well reflected in the share price and retains a Buy rating. Target is reduced to NZ$1.20 from NZ$1.25.
This report was published on September 20, 2023.
Current Price is $0.79. Target price not assessed.
Current consensus price target is $0.80, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in July.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 5.53 cents and EPS of 6.36 cents.
At the last closing share price the estimated dividend yield is 7.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.35.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 7.1, implying annual growth of N/A.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 6.9%.
Current consensus EPS estimate suggests the PER is 11.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 5.99 cents and EPS of 8.66 cents.
At the last closing share price the estimated dividend yield is 7.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.06.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.8, implying annual growth of 23.9%.
Current consensus DPS estimate is 8.3, implying a prospective dividend yield of 10.6%.
Current consensus EPS estimate suggests the PER is 8.9.
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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