Daily Market Reports | Nov 07 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)
BSL CRN CXL CXO DXI EVO FBU G1A JRV MDR PNR QPM RMD TIE
CXO CORE LITHIUM LIMITED
New Battery Elements - Overnight Price: $0.38
Canaccord Genuity rates ((CXO)) as Speculative Buy (1) -
Core Lithium's 1Q results revealed a 41% quarter-on-quarter increase in spodumene production and inaugural spodumene sales of 23kt SC5.0 at a realised price of US$2,560/t.
Cash costs of $1,067/t were a beat compared to the broker's forecast though the number excludes around $20m for inventory build and deferred waste stripping, highlight the analysts.
While the broker's FY24 earnings (EBITDA) forecast rises to $72m from $65m on lower expensed costs, the target falls by -8% to 55c on lower long-term recoveries. The Speculative Buy rating is unchanged.
This report was published on October 30, 2023.
Target price is $0.55 Current Price is $0.38 Difference: $0.175
If CXO meets the Canaccord Genuity target it will return approximately 47% (excluding dividends, fees and charges).
Current consensus price target is $0.48, suggesting upside of 28.0%(ex-dividends)
The company's fiscal year ends in June.
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 12.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 6.7, implying annual growth of 885.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 5.6.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 5.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 4.6, implying annual growth of -31.3%.
Current consensus DPS estimate is 0.7, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 8.2.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DXI DEXUS INDUSTRIA REIT
REITs - Overnight Price: $2.58
Moelis rates ((DXI)) as Buy (1) -
Dexus Industria REIT has sold two East-Melbourne assets for $45m, representing an average 0.6% premium to book value, observes Moelis.
The properties were 32-40 Garden Street Kilsyth and 57-67 Mark Anthony Drive, Dandenong.
Moelis observes balance shet gearing falls to 18%, which the broker expects will accommodate the REIT's development pipeline.
Buy rating retained, Moelis observing the company is trading at a -29% discount to net tangible assets (-20% ungeared). Target price eases to $3.11 from $3.24 to reflect higher base interest rate assumptions.
This report was published on October 30, 2023.
Target price is $3.11 Current Price is $2.58 Difference: $0.53
If DXI meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 16.40 cents and EPS of 17.10 cents.
At the last closing share price the estimated dividend yield is 6.36%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.09.
Forecast for FY25:
Moelis forecasts a full year FY25 dividend of 16.60 cents and EPS of 17.50 cents.
At the last closing share price the estimated dividend yield is 6.43%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.74.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
EVO EMBARK EARLY EDUCATION LIMITED
Education & Tuition - Overnight Price: $0.68
Petra Capital rates ((EVO)) as Buy (1) -
Petra Capital has made no changes to earnings forecasts following Embark Early Education’s trading update, which showed slowing occupancy growth as the broker had expected.
The declaration of a 2.0c interim dividend has nonetheless led to the broker increasing its dividend forecast in each of the next three years by 0.5cps.
With occupancy still well ahead of listed peers, and relatively attractive valuation metrics, Petra continues to see significant upside in the share price. Buy retained, target $1.05.
This report was published on November 7, 2023.
Target price is $1.05 Current Price is $0.68 Difference: $0.375
If EVO meets the Petra Capital target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Petra Capital forecasts a full year FY23 dividend of 3.70 cents and EPS of 4.62 cents.
At the last closing share price the estimated dividend yield is 5.48%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.60.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 4.16 cents and EPS of 5.36 cents.
At the last closing share price the estimated dividend yield is 6.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.58.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
FBU FLETCHER BUILDING LIMITED
Building Products & Services - Overnight Price: $4.12
Jarden rates ((FBU)) as Buy (1) -
The current softer residential cycle is proving deeper than Fletcher Building had anticipated, with residential volumes now down around -25% from the peak in late 2021, although in line with Jarden's expectations, but with green shoots of an early turn appearing.
The company continues to work with industy on solutions to the Iplex pipe issue. However, Fletcher Building maintains the issue is an installation one, and has at this point made no provisions to contribute to repair bills that it estimates at $50-100m.
The broker saw nothing in the company's update to drive changes to its FY24 earnings forecast. The Buy rating is retained and the target price decreaes to NZ$6.20 from NZ$6.40.
This report was published on November 27, 2023.
Current Price is $4.12. Target price not assessed.
Current consensus price target is $5.37, suggesting upside of 30.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 29.60 cents and EPS of 40.51 cents.
At the last closing share price the estimated dividend yield is 7.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.17.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 40.1, implying annual growth of N/A.
Current consensus DPS estimate is 27.8, implying a prospective dividend yield of 6.7%.
Current consensus EPS estimate suggests the PER is 10.3.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 29.60 cents and EPS of 46.06 cents.
At the last closing share price the estimated dividend yield is 7.18%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 38.0, implying annual growth of -5.2%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.8.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
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