Daily Market Reports | Nov 21 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)
BLU DHG DTL LNW NAB NHF NWS ORI PNR PPE REA SUN SVR SYA VVA WDS WIN XRO
BLU BLUE ENERGY LIMITED
NatGas - Overnight Price: $0.02
Petra Capital rates ((BLU)) as Buy (1) -
Following repairs to an oil cooling motor and a pressure build up test, Blue Energy announces gas production at the Sapphire Pilot Program in the North Bowen Basin has resumed after an around two-month hiatus.
Buy rating. The target falls to 12c (prior target not disclosed) after the removal of the broker's risked upside case and a reduction in assumed price for a future equity raise.
This report was published on November 13, 2023.
Target price is $0.12 Current Price is $0.02 Difference: $0.098
If BLU meets the Petra Capital target it will return approximately 445% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY23:
Petra Capital forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.10 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.00.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 0.00 cents and EPS of 0.00 cents.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DHG DOMAIN HOLDINGS AUSTRALIA LIMITED
Real Estate - Overnight Price: $3.63
Goldman Sachs rates ((DHG)) as Neutral (3) -
Goldman Sachs reduces its price target for Domain Holdings Australia to $3.50 from $3.60 on lower FY24-FY26 earnings (EBITDA) forecasts incorporating more normalised listing volumes for Sydney and Melbourne.
A strong Q1 recovery in Sydney and Melbourne listings was offset by continued softness in broader national volumes, explains the broker.
Q2 could see a further controllable yield increase, after a 13% Q1 rise, due to a better than expected Platinum Edge uptake and a small yield contribution from new depth customers, suggest the analysts.
The Neutral rating is unchanged.
This report was published on November 13, 2023.
Target price is $3.50 Current Price is $3.63 Difference: minus $0.13 (current price is over target).
If DHG meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $3.27, suggesting downside of -9.9%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 4.00 cents and EPS of 7.40 cents.
At the last closing share price the estimated dividend yield is 1.10%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.05.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.1, implying annual growth of 119.8%.
Current consensus DPS estimate is 6.2, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 39.9.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 6.00 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 1.65%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 36.30.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 9.4, implying annual growth of 3.3%.
Current consensus DPS estimate is 6.8, implying a prospective dividend yield of 1.9%.
Current consensus EPS estimate suggests the PER is 38.6.
Market Sentiment: -0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
DTL DATA#3 LIMITED.
IT & Support - Overnight Price: $7.60
Goldman Sachs rates ((DTL)) as Downgrade to Neutral from Buy (3) -
While Data#3's key growth drivers including digital transformation and cyber spending remain in place, Goldman Sachs believes a lower normalised demand environment awaits, following the buoyant covid-impacted FY20-23 period.
A growing mix of services is expected to boost earnings (EBITDA) margins over the medium-to-long term.
The broker has become more conservative on margin growth across FY24-26 given the necessity for front-loaded investments into its Services franchise and management's anticipated pursuit of lower-margin deals to expand up-market.
The target falls to $7.65 from $7.95 and the rating is downgraded to Neutral from Buy.
This report was published on November 13, 2023.
Target price is $7.65 Current Price is $7.60 Difference: $0.05
If DTL meets the Goldman Sachs target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $7.80, suggesting upside of 2.6%(ex-dividends)
The company's fiscal year ends in June.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 25.00 cents and EPS of 27.00 cents.
At the last closing share price the estimated dividend yield is 3.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 26.8, implying annual growth of 11.9%.
Current consensus DPS estimate is 23.5, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 28.4.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 28.00 cents and EPS of 31.00 cents.
At the last closing share price the estimated dividend yield is 3.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.52.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 29.9, implying annual growth of 11.6%.
Current consensus DPS estimate is 26.8, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 25.4.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
LNW LIGHT & WONDER INC
Gaming - Overnight Price: $132.46
Jarden rates ((LNW)) as Downgrade to Overweight from Buy (2) -
Double-digit Q3 revenue growth across all of Light & Wonder's three business segments, along with margin expansion, resulted in a 10% beat for adjusted earnings (EBITDA) against the consensus forecast, explains Jarden.
Scale is driving enhanced operational efficiencies, explain the analysts, with year-to-date adjusted earnings growing by more than 20%. The broker points out this outcome is well ahead of management's 15% compound annual growth rate (CAGR) ambition for FY23-FY25.
Jarden's target price rises to $141 from $136, while the rating is downgraded to Overweight from Buy on valuation after a period of share price outperformance.
This report was published on November 13, 2023.
Target price is $141.00 Current Price is $132.46 Difference: $8.54
If LNW meets the Jarden target it will return approximately 6% (excluding dividends, fees and charges).
The company's fiscal year ends in December.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of 158.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 83.36.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 0.00 cents and EPS of 372.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.52.
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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