Daily Market Reports | Oct 04 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)
BKW BOQ CAI IPD LIN LTR M7T NUF NXS PMV (2) QAN
BKW BRICKWORKS LIMITED
Building Products & Services - Overnight Price: $25.03
Jarden rates ((BKW)) as Neutral (3) -
A $395m full year result from Brickworks is a -54% decline year-on-year, Jarden has been quick to point out that the result is cycling off a record year.
Significant items totaling -$114m, as disclosed by the company, weighed on the result, the bulk of which was related to the exit of the company's loss-making Western Australian facility.
The broker continues to see long-term value in the stock, noting the inferred asset per share valuation is almost double net tangible assets. The Neutral rating and target price of $28.75 are both retained.
This report was published on September 29, 2023.
Target price is $28.75 Current Price is $25.03 Difference: $3.72
If BKW meets the Jarden target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $27.21, suggesting upside of 9.7%(ex-dividends)
The company's fiscal year ends in July.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 67.00 cents and EPS of 153.30 cents.
At the last closing share price the estimated dividend yield is 2.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.33.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 113.7, implying annual growth of -56.1%.
Current consensus DPS estimate is 63.5, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 21.8.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 69.00 cents and EPS of 214.60 cents.
At the last closing share price the estimated dividend yield is 2.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.66.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 149.4, implying annual growth of 31.4%.
Current consensus DPS estimate is 64.4, implying a prospective dividend yield of 2.6%.
Current consensus EPS estimate suggests the PER is 16.6.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BOQ BANK OF QUEENSLAND LIMITED
Banks - Overnight Price: $5.66
Goldman Sachs rates ((BOQ)) as Sell (5) -
Higher than expected restructuring costs are set to impact on Bank of Queensland's second half net profit, with the bank announcing a -$79m impact.
Goldman Sachs was left disappointed by the lack of detail around the payback from these incremental costs, noting that the broker expects more detail to be provided with the full year result (later this month).
Having recently downgraded to a Sell rating on Bank of Queensland, the broker retains its rating but decreases its target price to $5.59 from $5.60.
This report was published on September 29, 2023.
Target price is $5.59 Current Price is $5.66 Difference: minus $0.07 (current price is over target).
If BOQ meets the Goldman Sachs target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $6.37, suggesting upside of 14.1%(ex-dividends)
The company's fiscal year ends in August.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 EPS of 63.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.98.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 63.0, implying annual growth of -4.9%.
Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 7.4%.
Current consensus EPS estimate suggests the PER is 8.9.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 EPS of 52.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.88.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 55.9, implying annual growth of -11.3%.
Current consensus DPS estimate is 42.4, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 10.0.
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CAI CALIDUS RESOURCES LIMITED
Gold & Silver - Overnight Price: $0.14
Canaccord Genuity rates ((CAI)) as Downgrade to Hold from Speculative Buy (3) -
Following challenges in grade reconciliation at the Warrawoona Gold project in WA, management at Calidus Resources has revised reserves and resources. Canaccord Genuity notes this project has disappointed since operations began in mid-2022.
The overall resource estimate has been decreased by -16% or 260koz compared to the September 2022 update while the reserve estimate has fallen by -37%.
In some good news, the overall reserve grade has jumped to 2.1g/t Au from 1.4g/t Au, which the broker suggests will provide a
buffer should reconciliation or dilution issues persist.
Canaccord Genuity now risks its valuation 50% in line with other struggling early-stage producers under coverage and the target falls to 15c from 65c.
The rating is also lowered to Hold from Speculative Buy on valuation.
This report was published on September 29, 2023.
Target price is $0.15 Current Price is $0.14 Difference: $0.005
If CAI meets the Canaccord Genuity target it will return approximately 3% (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 6.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 2.42.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 4.83.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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