Daily Market Reports | 12:55 PM
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)
AIA AVG AZJ CLW CQR CSL (2) CWP DDR DMP EHL GTN IAG (2) INA MAQ (2) MGH (2) NWC PME RFG TLG XRO
CQR CHARTER HALL RETAIL REIT
REITs – Overnight Price: $3.63
Jarden rates ((CQR)) as Overweight (2) –
Charter Hall Retail REIT has results of its valuation process and while valuations are declining Jarden believes the downside risk in non-discretionary retail is less than in most other asset classes.
Portfolio valuations were down -3.7% based on 29 basis points of capitalisation rate expansion and offset by the implied rental growth of 2.0%.
While its non-discretionary focus has proven more resilient, a longer-than-expected slowdown for retailers could put pressure on the A-REIT’s earnings and valuation, the broker adds. Overweight rating and $4.55 target maintained.
This report was published on June 15, 2023.
Target price is $4.55 Current Price is $3.63 Difference: $0.92
If CQR meets the Jarden target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $4.31, suggesting upside of 17.4%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 25.80 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 7.11%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.65.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.7, implying annual growth of -75.0%.
Current consensus DPS estimate is 25.9, implying a prospective dividend yield of 7.1%.
Current consensus EPS estimate suggests the PER is 12.8.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 25.70 cents and EPS of 28.70 cents.
At the last closing share price the estimated dividend yield is 7.08%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 12.65.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 28.4, implying annual growth of -1.0%.
Current consensus DPS estimate is 25.6, implying a prospective dividend yield of 7.0%.
Current consensus EPS estimate suggests the PER is 12.9.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CSL CSL LIMITED
Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $277.86
Goldman Sachs rates ((CSL)) as Neutral (3) –
CSL has signalled net profit in FY23 is likely to be at the top end of the $2.7-2.8bn range. Significantly, the company has announced new FY24 net profit guidance of $2.9-3.0bn, assuming modest improvement in gross margins.
The company now expects CSL Behring will return to pre-pandemic gross margins over the medium term (defined as 3-5 years).
While the volume recovery is underway the uncertainties about margin and returns keeps the broker on the sidelines and a Neutral rating is retained. The target is reduced to $295 from $314.
This report was published on June 14, 2023.
Target price is $295.00 Current Price is $277.86 Difference: $17.14
If CSL meets the Goldman Sachs target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $331.17, suggesting upside of 16.4%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 354.76 cents and EPS of 725.84 cents.
At the last closing share price the estimated dividend yield is 1.28%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 38.28.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 773.1, implying annual growth of N/A.
Current consensus DPS estimate is 360.7, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 36.8.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 472.02 cents and EPS of 892.09 cents.
At the last closing share price the estimated dividend yield is 1.70%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.15.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 944.2, implying annual growth of 22.1%.
Current consensus DPS estimate is 446.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 30.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
Jarden rates ((CSL)) as Overweight (2) –
CSL has flagged an increase in its FX headwinds although expects constant currency net profit to be at the top end of the US$2.7-2.8bn range. Jarden is also surprised at the early release of guidance.
The net profit guidance of $2.88-3.01bn has signalled a much slower recovery than previously expected. Jarden downgrades estimates based on the deterioration in FX and a slower recovery to the CSL Behring gross margin.
The Overweight rating is maintained with the broker’s investment view largely on track, despite the delays. Target is reduced to $322.48 from $347.80.
This report was published on June 14, 2023.
Target price is $322.48 Current Price is $277.86 Difference: $44.62
If CSL meets the Jarden target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $331.17, suggesting upside of 16.4%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 323.59 cents and EPS of 674.78 cents.
At the last closing share price the estimated dividend yield is 1.16%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 41.18.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 773.1, implying annual growth of N/A.
Current consensus DPS estimate is 360.7, implying a prospective dividend yield of 1.3%.
Current consensus EPS estimate suggests the PER is 36.8.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 341.40 cents and EPS of 894.17 cents.
At the last closing share price the estimated dividend yield is 1.23%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.07.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 944.2, implying annual growth of 22.1%.
Current consensus DPS estimate is 446.8, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 30.1.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CWP CEDAR WOODS PROPERTIES LIMITED
Infra & Property Developers – Overnight Price: $4.92
Moelis rates ((CWP)) as Buy (1) –
Cedar Woods Properties has downgraded FY23 earnings guidance by -20% citing delayed settlements because of adverse weather conditions throughout the year as well as supply chain constraints.
Importantly, Moelis points out, the earnings are not lost but simply deferred into FY24. On the positive side, despite relatively soft consumer sentiment, sales have continued to improve throughout recent months.
The broker updates estimates to reflect revise guidance and maintains a Buy rating with a $5.93 target.
This report was published on June 13, 2023.
Target price is $5.93 Current Price is $4.92 Difference: $1.01
If CWP meets the Moelis target it will return approximately 21% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 27.50 cents and EPS of 37.20 cents.
At the last closing share price the estimated dividend yield is 5.59%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.23.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 30.00 cents and EPS of 49.30 cents.
At the last closing share price the estimated dividend yield is 6.10%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 9.98.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
DDR DICKER DATA LIMITED
Hardware & Equipment – Overnight Price: $8.19
Petra Capital rates ((DDR)) as Buy (1) –
Petra Capital believes upside risks for Dicker Data from realising acquisition synergies and participating in the post-pandemic PC refresh cycle more than offset falling demand for new PCs and further interest rate rises.
The broker expects the track record of above-system sales and earnings growth will continue over the medium term and considers the 2023 P/E ratio of 17.1x compelling value.
Buy rating reiterated. Target is reduced to $10.26 from $10.38.
This report was published on June 16, 2023.
Target price is $10.26 Current Price is $8.19 Difference: $2.07
If DDR meets the Petra Capital target it will return approximately 25% (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 47.50 cents and EPS of 47.30 cents.
At the last closing share price the estimated dividend yield is 5.80%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.32.
Forecast for FY24:
Petra Capital forecasts a full year FY24 dividend of 53.00 cents and EPS of 52.90 cents.
At the last closing share price the estimated dividend yield is 6.47%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.48.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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