Daily Market Reports | Nov 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)
APM ARX AVH BRG CNU CVV JHX JIN NAB ORI PXA SCG SPZ VSL XRO
APM APM HUMAN SERVICES INTERNATIONAL LIMITED
Healthcare - Overnight Price: $1.52
Canaccord Genuity rates ((APM)) as Buy (1) -
APM Human Services International has warned first half earnings are set to decline on the previous comparable period, a reflection of persistently low unemployment rates in key employment services markets, alongside higher interest costs and effective tax rates.
Canaccord Genuity points out an earnings skew and operational efficiencies should see second half earnings exceed the first half. The broker finds the company well positioned over the medium-term, with new contracts to commence in FY24 and FY25.
The Buy rating is retained and the target price decreases to $2.12 from $2.65.
This report was published on November 13, 2023.
Target price is $2.12 Current Price is $1.52 Difference: $0.595
If APM meets the Canaccord Genuity target it will return approximately 39% (excluding dividends, fees and charges).
Current consensus price target is $2.55, suggesting upside of 67.2%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 9.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.47.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.5, implying annual growth of 58.0%.
Current consensus DPS estimate is 10.1, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 8.2.
Forecast for FY25:
Canaccord Genuity forecasts a full year FY25 dividend of 9.00 cents and EPS of 19.00 cents.
At the last closing share price the estimated dividend yield is 5.90%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 8.03.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 21.3, implying annual growth of 15.1%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 7.2.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ARX AROA BIOSURGERY LIMITED
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $0.70
Wilsons rates ((ARX)) as Overweight (1) -
Aroa Biosurgery's distribution partner, Tela Bio, has unfortunately suffered disruption with its sales team, which has led to a disappointing quarter and profit warning for the full financial year.
Wilsons is not too fussed about it, instead talking about a temporary impact that will still linger in the fourth quarter, but it has no impact on the 12-24 months ahead or on the demand for OviTex, which is now the lead biologic hernia repair mesh in the USA.
Overweight. Target $1.69.
This report was published on November 10, 2023.
Target price is $1.69 Current Price is $0.70 Difference: $0.99
If ARX meets the Wilsons target it will return approximately 141% (excluding dividends, fees and charges).
The company's fiscal year ends in March.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents and EPS of minus 0.37 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 191.26.
Forecast for FY25:
Wilsons forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.01 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.77.
This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
AVH AVITA MEDICAL INC
Pharmaceuticals & Biotech/Lifesciences - Overnight Price: $3.80
Wilsons rates ((AVH)) as Overweight (1) -
Avita Medical has pleased Wilsons by releasing a quarterly update that met forecasts and guidance and the broker lauds what this biotech brings to the table: predictability.
Management’s expectations of material cross-selling opportunities within existing burns accounts to treat soft tissue/full thickness defects (FTD) is playing out, the broker declares.
Wilsons believes with costs under control and profitability target for FY25, including further investments in Vitiligo, on management's radar, this company is turning the corner.
Overweight. Target $5.39.
This report was published on November 10, 2023.
Target price is $5.39 Current Price is $3.80 Difference: $1.59
If AVH meets the Wilsons target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $6.40, suggesting upside of 68.3%(ex-dividends)
The company's fiscal year ends in December.
Forecast for FY23:
Wilsons forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 91.81 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -88.6, 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 N/A.
Forecast for FY24:
Wilsons forecasts a full year FY24 dividend of 0.00 cents.
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is -39.2, 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 N/A.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BRG BREVILLE GROUP LIMITED
Household & Personal Products - Overnight Price: $23.81
Jarden rates ((BRG)) as Neutral (3) -
An unsurprising update from Breville Group, says Jarden, with trading as expected. The broker anticipates Breville will benefit from tailwinds into FY25 as the covid replacement cycle hits and cost of good sold eases, and is becoming more positive on the stock.
The broker is anticipated 7% earnings growth over FY24, and 15% growth over FY25. Jarden sees signs of green shoots in the US and Europe, which have the potential to drive top-line acceleration into FY25.
The Neutral rating and target price of $23.80 are retained.
This report was published on November 8, 2023.
Target price is $23.80 Current Price is $23.81 Difference: minus $0.01 (current price is over target).
If BRG meets the Jarden target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $26.40, suggesting upside of 10.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 36.00 cents and EPS of 84.10 cents.
At the last closing share price the estimated dividend yield is 1.51%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.31.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 84.9, implying annual growth of 9.9%.
Current consensus DPS estimate is 32.9, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 28.0.
Forecast for FY25:
Jarden forecasts a full year FY25 dividend of 42.00 cents and EPS of 98.60 cents.
At the last closing share price the estimated dividend yield is 1.76%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 97.4, implying annual growth of 14.7%.
Current consensus DPS estimate is 37.5, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 24.4.
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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