Daily Market Reports | 10:00 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
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The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)
ABP CBA (2) CDA COH (3) CQR CTD (2) FBU FMG (2) GNC GOZ IRI NWH PME THL WHC
ABP ABACUS PROPERTY GROUP
REITs – Overnight Price: $2.82
Moelis rates ((ABP)) as Buy (1) –
Moelis points to a slight miss on the 1H23 results for Abacus Property and highlights the strategic plan to de-consolidate the King Storage business into an “externally managed REIT”, which will be known as Storage King REIT.
Operationally there is evidence of a softening in demand for storage as the rising interest rate environment weighs on discretionary spend, while the commercial division was viewed as “solid” and asset valuations were lowered by -$77m.
Earnings forecasts are reduced by -4.1% and -4% for FY23 and FY24. A Buy rating is retained the target adjusted to $3.31 from $3.21.
This report was published on February 23, 2023.
Target price is $3.31 Current Price is $2.82 Difference: $0.49
If ABP meets the Moelis target it will return approximately 17% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 12.9%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 18.40 cents and EPS of 18.50 cents.
At the last closing share price the estimated dividend yield is 6.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.24.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.7, implying annual growth of -69.4%.
Current consensus DPS estimate is 18.6, implying a prospective dividend yield of 6.6%.
Current consensus EPS estimate suggests the PER is 15.1.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 18.50 cents and EPS of 18.80 cents.
At the last closing share price the estimated dividend yield is 6.56%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.00.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 18.1, implying annual growth of -3.2%.
Current consensus DPS estimate is 17.7, implying a prospective dividend yield of 6.3%.
Current consensus EPS estimate suggests the PER is 15.6.
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CBA COMMONWEALTH BANK OF AUSTRALIA
Banks – Overnight Price: $99.90
Goldman Sachs rates ((CBA)) as Sell (5) –
Goldman Sachs remains lukewarm on CommBank highlighting a slight 1H23 earnings beat and a lower than expected dividend per share.
The analyst notes the company has pulled forward from FY24 estimates, an expected peaking of net interest margins and a vulnerability of the group to mortgage competition with the higher exposure to the Australian consumer.
Goldman Sachs adjusts earnings forecasts by 0.3% for FY23 and -2.8% for FY24.
The target is accordingly lowered to $90.39 from $92.56 and a Sell rating is retained, based on the high valuation.
This report was published on February 16, 2023.
Target price is $90.39 Current Price is $99.90 Difference: minus $9.51 (current price is over target).
If CBA meets the Goldman Sachs target it will return approximately minus 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $91.66, suggesting downside of -8.2%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 468.00 cents and EPS of 607.00 cents.
At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.46.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 611.9, implying annual growth of -2.2%.
Current consensus DPS estimate is 429.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.3.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 484.00 cents and EPS of 621.00 cents.
At the last closing share price the estimated dividend yield is 4.84%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 16.09.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 607.6, implying annual growth of -0.7%.
Current consensus DPS estimate is 453.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 16.4.
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
Jarden rates ((CBA)) as Underweight (4) –
CommBank issued a bellweather signal on the banking environment going forward in its 1H23 earnings report, in Jarden’s opinion, flagging peaking net interest margins, rising costs and bad and doubtful debts.
Post the earnings update, Jarden lowers EPS forecasts by -2.4% and -4.4% for FY23 and FY24.
An Underweight rating is retained and the target lowered to $100 from $103.
This report was published on February 17, 2023.
Target price is $100.00 Current Price is $99.90 Difference: $0.1
If CBA meets the Jarden target it will return approximately 0% (excluding dividends, fees and charges).
Current consensus price target is $91.66, suggesting downside of -8.2%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 dividend of 440.00 cents and EPS of 582.80 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.14.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 611.9, implying annual growth of -2.2%.
Current consensus DPS estimate is 429.5, implying a prospective dividend yield of 4.3%.
Current consensus EPS estimate suggests the PER is 16.3.
Forecast for FY24:
Jarden forecasts a full year FY24 dividend of 445.00 cents and EPS of 577.50 cents.
At the last closing share price the estimated dividend yield is 4.45%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 17.30.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 607.6, implying annual growth of -0.7%.
Current consensus DPS estimate is 453.8, implying a prospective dividend yield of 4.5%.
Current consensus EPS estimate suggests the PER is 16.4.
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CDA CODAN LIMITED
Hardware & Equipment – Overnight Price: $5.48
Moelis rates ((CDA)) as Hold (3) –
Codan’s interim results met Moelis’ expectations and included the announcement to acquire GeoConnex (Computer Aided Dispatch and Mapping Solutions) for -$8.4m.
The addition is considered synergistic to the existing operations and results in a 2% increase in FY24 EPS forecasts, notes the broker.
A Buy rating is retained and the target raised to $5.89 from $5.43.
This report was published on February 17, 2023.
Target price is $5.89 Current Price is $5.48 Difference: $0.41
If CDA meets the Moelis target it will return approximately 7% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.
Forecast for FY23:
Moelis forecasts a full year FY23 dividend of 18.20 cents and EPS of 34.60 cents.
At the last closing share price the estimated dividend yield is 3.32%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 15.84.
Forecast for FY24:
Moelis forecasts a full year FY24 dividend of 20.70 cents and EPS of 39.40 cents.
At the last closing share price the estimated dividend yield is 3.78%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 13.91.
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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