Daily Market Reports | 10:28 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)
AGY AKE (2) ANZ BEN BOQ BTH CBA CLG COE CXO EVT GDC GLN HUB (2) IEL IGO IRI JBH JDO LLL LOT LYC MQG NAB PLS PLT PTM QUB SM1 WBC
AGY ARGOSY MINERALS LIMITED
New Battery Elements – Overnight Price: $0.64
Canaccord Genuity rates ((AGY)) as Buy (1) –
Canaccord Genuity reviews the EV materials sector.
It says the key question for the lithium market is whether it will move into a surplus in 2023. If so, the broker expects a swift price retracement to US$30K.
For now, the lithium price deck is largely unchanged, 2023 lithium price forecasts easing -1%, and the broker observes rare-earths prices are recovering into 2023.
The broker observes Argosy Minerals was producing at its Rincon Asset in December and expects news soon of an operational ramp-up.
Speculative Buy rating retained. Target price falls to 80c from 85c.
This report was published on January 17, 2023.
Target price is $0.80 Current Price is $0.64 Difference: $0.165
If AGY meets the Canaccord Genuity target it will return approximately 26% (excluding dividends, fees and charges).
The company’s fiscal year ends in December.
Forecast for FY22:
Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents.
Market Sentiment: 1.0
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: $12.25
Canaccord Genuity rates ((AKE)) as Buy (1) –
Canaccord Genuity reviews the EV materials sector.
It says the key question for the lithium market is whether it will move into a surplus in 2023. If so, the broker expects a swift price retracement to US$30K.
For now, the broker’s lithium price deck is largely unchanged, 2023 lithium price forecasts easing -1%, and the broker observes rare-earths prices are recovering into 2023.
Buy rating and $20.40 target price retained.
This report was published on January 17, 2023.
Target price is $20.40 Current Price is $12.25 Difference: $8.15
If AKE meets the Canaccord Genuity target it will return approximately 67% (excluding dividends, fees and charges).
Current consensus price target is $16.67, suggesting upside of 36.1%(ex-dividends)
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 100.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.25.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 118.3, implying annual growth of 66.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 10.4.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 149.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.22.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 153.8, implying annual growth of 30.0%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 8.0.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
Jarden rates ((AKE)) as Buy (1) –
Jarden highlights the Canadian Federal environmental approval for Allkem’s James Bay development.
The broker considers the remaining approvals as more “procedural” in nature and expects the first production by the March 2025 quarter with Allkem aiming for production to come on stream in the first half of 2024.
December quarter results are due on January 18 with anticipated weakness from Mt Cattlin and ongoing improvements from Olaroz.
Earnings forecasts adjust by -5% for the expected December quarter weakness at Mt Cattlin in FY23 and remain essentially unchanged for FY24.
The target is $17.77 and incorporates a $1.80 contribution from James Bay.
Buy rating.
This report was published on January 18, 2023.
Target price is $17.77 Current Price is $12.25 Difference: $5.52
If AKE meets the Jarden target it will return approximately 45% (excluding dividends, fees and charges).
Current consensus price target is $16.67, suggesting upside of 36.1%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 EPS of 87.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.94.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 118.3, implying annual growth of 66.3%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 10.4.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 75.70 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 153.8, implying annual growth of 30.0%.
Current consensus DPS estimate is 14.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 8.0.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
ANZ ANZ GROUP HOLDINGS LIMITED
Banks – Overnight Price: $24.79
Goldman Sachs rates ((ANZ)) as Neutral (3) –
Goldman Sachs lowers its FY23 total shareholder return outlook for Australian banks due to early signs of increased competition for deposits, which will impact net interest margins (NIMs), unless mortgage competition eases.
The broker reminds investors that for every -25bps deterioration in Australian deposit spreads, sector NIMs fall by -14bps.
More positively, while business volumes are slowing they should remain elevated, according to the analysts, and metrics for asset quality are showing strength.
Goldman Sachs increases its target for ANZ Bank to $26.63 from $26.25 and retains its Neutral rating.
This report was published on January 16, 2023.
Target price is $26.63 Current Price is $24.79 Difference: $1.84
If ANZ meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $27.54, suggesting upside of 11.1%(ex-dividends)
The company’s fiscal year ends in September.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 159.00 cents and EPS of 237.00 cents.
At the last closing share price the estimated dividend yield is 6.41%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 242.1, implying annual growth of -3.2%.
Current consensus DPS estimate is 156.8, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 10.2.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 162.00 cents and EPS of 226.00 cents.
At the last closing share price the estimated dividend yield is 6.53%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.97.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 239.8, implying annual growth of -1.0%.
Current consensus DPS estimate is 161.7, implying a prospective dividend yield of 6.5%.
Current consensus EPS estimate suggests the PER is 10.3.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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