Daily Market Reports | Oct 02 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)
CIA GNX IAG IPD LRS MEI NUF PMV PPS QBE SLH SUN WIN
LRS LATIN RESOURCES LIMITED
Mining - Overnight Price: $0.24
Canaccord Genuity rates ((LRS)) as Speculative Buy (1) -
A preliminary economic assessment of Latin Resources' Salinas has confirmed "attractive project economics" in Canaccord Genuity's view. The assessment outlines a two-stage production ramp up, with stage one production estimated at 220,000 tonnes annually and expanding to 525,000 tonnes annually from 2028.
The assessment has cash costs -23% lower than the broker's earlier modeling, and the broker noted a "favourable operating cost structure relative to other markets".
The Speculative Buy rating and target price of $0.45 are both retained.
This report was published on September 28, 2023.
Target price is $0.45 Current Price is $0.24 Difference: $0.205
If LRS meets the Canaccord Genuity target it will return approximately 84% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.00 cents.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
MEI METEORIC RESOURCES NL
Overnight Price: $0.23
Petra Capital rates ((MEI)) as Buy (1) -
Meteoric Resources has further metallurgical results from its Caldeira rare earth project in Brazil and Petra Capital is impressed.
Given there are few operating ionic rare earth assets outside China the broker believes continued positive results will broaden investor interest ahead of the maiden mining study which is due in March.
Average leaching recoveries of 74% praseodymium and 78% neodymium have been flagged in clay zones. Petra Capital envisages potential to upgrade if the company can maintain leach results above 70% and reiterates a Buy rating and $0.32 target.
This report was published on September 28, 2023.
Target price is $0.32 Current Price is $0.23 Difference: $0.095
If MEI meets the Petra Capital target it will return approximately 42% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Petra Capital 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 56.25.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 0.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.50.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
NUF NUFARM LIMITED
Agriculture - Overnight Price: $4.75
Moelis rates ((NUF)) as Hold (3) -
Nufarm has felt the impacts of a agricultural chemical market oversupply in the second half of its financial year, with lowered full year earnings guidance reflective of the difficulties according to Moelis.
Where the company had previously guided to modest growth on its FY22 earnings of $447m, it now anticipates earnings between $430-440m. The broker expects a flow on impact to drive slightly lower crop protection margins in the coming financial year.
The Hold rating is retained and the target price decreases to $5.01 from $5.47.
This report was published on September 28, 2023.
Target price is $5.01 Current Price is $4.75 Difference: $0.26
If NUF meets the Moelis target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $6.44, suggesting upside of 35.6%(ex-dividends)
The company's fiscal year ends in September.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 5.00 cents and EPS of 31.70 cents.
At the last closing share price the estimated dividend yield is 1.05%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 37.2, implying annual growth of 41.4%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 2.1%.
Current consensus EPS estimate suggests the PER is 12.8.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 8.00 cents and EPS of 29.50 cents.
At the last closing share price the estimated dividend yield is 1.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.10.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 39.2, implying annual growth of 5.4%.
Current consensus DPS estimate is 11.1, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 12.1.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PMV PREMIER INVESTMENTS LIMITED
Apparel & Footwear - Overnight Price: $25.00
Petra Capital rates ((PMV)) as Buy (1) -
A resilient full year result from Premier Investments, as described by Petra Capital, was supported by a strong rebound from Smiggle in the second half with the brand reporting a year-on-year sales increase of 12.4%.
Group-wide, retail earnings grew 6.4% year-on-year to $356.5m, and while sales have declined in the early weeks of the new financial year the Smiggle brand has delivered a strong start.
The Buy rating is retained and the target price decreases to $29.50 from $29.80.
This report was published on September 29, 2023.
Target price is $29.50 Current Price is $25.00 Difference: $4.5
If PMV meets the Petra Capital target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $25.19, suggesting upside of 0.8%(ex-dividends)
The company's fiscal year ends in July.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 115.60 cents and EPS of 169.10 cents.
At the last closing share price the estimated dividend yield is 4.62%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.78.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 146.4, implying annual growth of -14.0%.
Current consensus DPS estimate is 103.5, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 17.1.
Forecast for FY25:
Petra Capital forecasts a full year FY25 dividend of 116.80 cents and EPS of 183.10 cents.
At the last closing share price the estimated dividend yield is 4.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.65.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 147.9, implying annual growth of 1.0%.
Current consensus DPS estimate is 108.0, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.9.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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