Daily Market Reports | 10:02 AM
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)
360 (2) ADH AKE BC8 CXL CXO DRE DRO DSK IGO JHG KMD LOV LTR PLS QAN SDR SUL (3)
360 LIFE360 INC
Software & Services – Overnight Price: $5.50
Bell Potter rates ((360)) as Buy (1) –
Life360’s trading update roughly met guidance.
Bell Potter cuts revenue forecasts to the lower end of the guidance range and slightly ups its adjusted 2022 EBITDA loss but now estimates positive operating cash flow in 2023 (2023 EPS forecasts also turn positive).
Buy rating and $9 target price retained.
This report was published on January 16, 2023.
Target price is $9.00 Current Price is $5.50 Difference: $3.5
If 360 meets the Bell Potter target it will return approximately 64% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.
Forecast for FY22:
Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 45.42 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 12.11.
Forecast for FY23:
Bell Potter forecasts a full year FY23 dividend of 0.00 cents and EPS of 4.33 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 127.17.
This company reports in USD. 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
Goldman Sachs rates ((360)) as Buy (1) –
Life360 has confirmed it will meet 2022 guidance, just scraping in.
Goldman Sachs notes the company expects to be break even by the June quarter – one quarter ahead of schedule – and that subscriber and churn patterns have normalised.
Combined, the broker believes investors can relax, and expects front-book conversion to improve throughout the year.
Buy rating retained. Target price rises to $7.90 from $7.60 in December.
This report was published on January 17, 2023.
Target price is $7.90 Current Price is $5.50 Difference: $2.4
If 360 meets the Goldman Sachs target it will return approximately 44% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.
Forecast for FY22:
Goldman Sachs forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 31.72 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 17.34.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 10.09 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 54.50.
This company reports in USD. 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
ADH ADAIRS LIMITED
Furniture & Renovation – Overnight Price: $2.88
Canaccord Genuity rates ((ADH)) as Hold (3) –
Despite positive commentary coming from discretionary retail, Canaccord Genuity expects the sector to face increasingly challenging conditions throughout the remainder of the fiscal year, with potential for downgrades. The broker does note possibility for ongoing strong consumer spending in pockets, tailwinds from employment and migration trends, and strong management to offset.
Adairs demonstrated strong sales growth early in the financial year, but Canaccord Genuity notes store closure cycling makes a clear read through impossible. Feeling Adairs carries excess inventory and continues to suffer the cost efficiency issues that impacted on its FY22, the broker remains neutral on the stock.
The Hold rating and target price of $2.30 are retained.
This report was published on January 13, 2023.
Target price is $2.30 Current Price is $2.88 Difference: minus $0.58 (current price is over target).
If ADH meets the Canaccord Genuity target it will return approximately minus 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.68, suggesting downside of -6.8%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 18.00 cents and EPS of 28.80 cents.
At the last closing share price the estimated dividend yield is 6.25%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 29.3, implying annual growth of 11.1%.
Current consensus DPS estimate is 19.0, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 9.8.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 19.00 cents and EPS of 34.20 cents.
At the last closing share price the estimated dividend yield is 6.60%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.42.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 33.5, implying annual growth of 14.3%.
Current consensus DPS estimate is 22.0, implying a prospective dividend yield of 7.6%.
Current consensus EPS estimate suggests the PER is 8.6.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
AKE ALLKEM LIMITED
New Battery Elements – Overnight Price: $12.29
Goldman Sachs rates ((AKE)) as Buy (1) –
The Australian lithium sector has had a positive start to the new year, outperforming China and US peers with a 15% recovery following declines in late 2022. While Goldman Sachs expects pricing to reflect a tight market throughout the first half, it anticipates a second half decline.
The broker retains a preference for Allkem, noting the company has the largest resource and one of the best production outlooks within its coverage. Goldman Sachs expects product optimisation and cost reductions to be a driver of the company’s outlook.
The Buy rating and target price of $15.20 are retained.
This report was published on January 13, 2023.
Target price is $15.20 Current Price is $12.29 Difference: $2.91
If AKE meets the Goldman Sachs target it will return approximately 24% (excluding dividends, fees and charges).
Current consensus price target is $16.87, suggesting upside of 37.3%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 0.00 cents and EPS of 98.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.54.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 119.4, implying annual growth of 67.8%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 10.3.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 0.00 cents and EPS of 58.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 21.19.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 138.9, implying annual growth of 16.3%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 8.8.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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