Daily Market Reports | 10:01 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)
ALL CSR EMN FPH GNG GT1 IEL ORA PXA STX TRJ
ALL ARISTOCRAT LEISURE LIMITED
Gaming – Overnight Price: $39.90
Jarden rates ((ALL)) as Overweight (2) –
While current Aristocrat Leisure CEO Trevor Croker has been in position for seven years, the departure of Mike Lang, the CEO of Pixel United, is the fourth change in Aristocrat’s executive leadership team over the past 12-18 months, notes Jarden.
The recent departure highlights short-term earnings risk, and the broker expects FY23 segment profit for Pixel United will be moderately below the level reported for FY22, in local currency terms.
Nonetheless, Jarden believes downside risk will be more than offset by market share gains across strong land-based gaming markets.
The Overweight rating and $41.90 target are maintained.
This report was published on October 6, 2023.
Target price is $41.90 Current Price is $39.90 Difference: $2
If ALL meets the Jarden target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $44.66, suggesting upside of 11.9%(ex-dividends)
The company’s fiscal year ends in September.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 59.00 cents and EPS of 197.90 cents.
At the last closing share price the estimated dividend yield is 1.48%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 195.2, implying annual growth of 36.6%.
Current consensus DPS estimate is 64.1, implying a prospective dividend yield of 1.6%.
Current consensus EPS estimate suggests the PER is 20.4.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 69.00 cents and EPS of 197.90 cents.
At the last closing share price the estimated dividend yield is 1.73%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 20.16.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 210.1, implying annual growth of 7.6%.
Current consensus DPS estimate is 73.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 19.0.
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CSR CSR LIMITED
Building Products & Services – Overnight Price: $5.85
Goldman Sachs rates ((CSR)) as Upgrade to Buy from Neutral (1) –
Goldman Sachs expects the existing building backlog could provide some through-the-cycle buffering to CSR. With dwellings under construction at historic levels, the broker is predicting completions increase to 187,000 and the current backlog will resolve itself by end of 2024.
It expects completions to moderate in FY25 and trough in FY26, by which time a steady or lowering interest rate environment could yield an improved housing outlook.
The rating is upgraded to Buy from Neutral and the target price increases $6.45 from $5.95.
This report was published on October 8, 2023.
Target price is $6.45 Current Price is $5.85 Difference: $0.6
If CSR meets the Goldman Sachs target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $5.62, suggesting downside of -3.9%(ex-dividends)
The company’s fiscal year ends in March.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 30.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.62.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 37.4, implying annual growth of -17.9%.
Current consensus DPS estimate is 28.0, implying a prospective dividend yield of 4.8%.
Current consensus EPS estimate suggests the PER is 15.6.
Forecast for FY25:
Goldman Sachs forecasts a full year FY25 dividend of 30.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 5.13%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 14.62.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 36.8, implying annual growth of -1.6%.
Current consensus DPS estimate is 27.2, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 15.9.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
EMN EURO MANGANESE INC
New Battery Elements – Overnight Price: $0.12
Canaccord Genuity rates ((EMN)) as Speculative Buy (1) –
Having completed resubmission of its Environmental and Social Impact Assessment (ESIA) for its Chvaletice manganese project, Euro Manganese is now anticipating final ESIA approval within three months.
Canaccord Genuity continues to find Euro Manganese a compelling exposure to the battery thematic. Over the coming nine months the broker expects to see completion of land access agreements, planning permit submissions, commencement of front end engineering design, offtake agreement and financing discussions, and potentially early works programs.
The Speculative Buy rating and target price of $1.15 are retained.
This report was published on October 5, 2023.
Target price is $1.15 Current Price is $0.12 Difference: $1.035
If EMN meets the Canaccord Genuity target it will return approximately 900% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.
Forecast for FY22:
Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 5.75.
Forecast for FY23:
Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 11.50.
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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