Daily Market Reports | 10:34 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)
AKE ALC AWC BHP BRG BSL CIA CMM CRN CXO DGL DRR FMG IGO ILU LEL LYC MIN (2) NHC PAN PLS REG RIO S32 SFR (2) SGM WHC
ALC ALCIDION GROUP LIMITED
Healthcare services – Overnight Price: $0.10
Petra Capital rates ((ALC)) as Initiation of coverage with Buy (1) –
Petra Capital initiates coverage on Alcidion Group with a Buy rating and $0.15 target. The company provides technology that improves the efficiency and quality of patient care in health organisations worldwide.
Since listing, the business as expanded from its core Miya platform through acquisitions such as Extramed and Silverlink patient administration system. Petra Capital now assesses the business is starting to get scale and become profitable.
This report was published on June 19, 2023.
Target price is $0.15 Current Price is $0.10 Difference: $0.053
If ALC meets the Petra Capital target it will return approximately 55% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.
Forecast for FY23:
Petra Capital forecasts a full year FY23 EPS of minus 0.40 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 24.25.
Forecast for FY24:
Petra Capital forecasts a full year FY24 EPS of minus 0.20 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is minus 48.50.
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
BRG BREVILLE GROUP LIMITED
Household & Personal Products – Overnight Price: $19.79
Goldman Sachs rates ((BRG)) as Buy (1) –
Goldman Sachs reduces FY23-25 sales estimates for Breville Group by up to -3% because of generally softer trends across key peers. A Buy rating is reiterated given the structural growth of premium espresso coffee and the still early penetration of premium coffee machines.
Strong new product development should support growth that is above the industry even given a more modest consumer environment. Target is $22.50.
This report was published on June 16, 2023.
Target price is $22.50 Current Price is $19.79 Difference: $2.71
If BRG meets the Goldman Sachs target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $23.34, suggesting upside of 17.9%(ex-dividends)
The company’s fiscal year ends in June.
Forecast for FY23:
Goldman Sachs forecasts a full year FY23 dividend of 30.00 cents and EPS of 76.00 cents.
At the last closing share price the estimated dividend yield is 1.52%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 26.04.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 76.1, implying annual growth of 0.3%.
Current consensus DPS estimate is 29.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 26.0.
Forecast for FY24:
Goldman Sachs forecasts a full year FY24 dividend of 36.00 cents and EPS of 89.00 cents.
At the last closing share price the estimated dividend yield is 1.82%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.24.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 86.3, implying annual growth of 13.4%.
Current consensus DPS estimate is 33.4, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 22.9.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
CMM CAPRICORN METALS LIMITED
Gold & Silver – Overnight Price: $4.33
Jarden rates ((CMM)) as Initiation of coverage with Overweight (2) –
Jarden initiates coverage of Capricorn Metals with an Overweight rating and $4.80 target. The broker lauds the management team which has been together for 20 years building conservative gold mining companies that are consistently profitable.
In the broker’s view, ongoing government measures to counteract inflation will likely attract safe haven investment in the US dollar, capping significant gold price upside.
Therefore, it could be a matter of which of the gold producers can capture margins through cost control and Capricorn Metals has a good record in this regard.
This report was published on June 16, 2023.
Target price is $4.80 Current Price is $4.33 Difference: $0.47
If CMM meets the Jarden target it will return approximately 11% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.
Forecast for FY23:
Jarden forecasts a full year FY23 EPS of 21.90 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 19.77.
Forecast for FY24:
Jarden forecasts a full year FY24 EPS of 19.50 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 22.21.
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
DGL DGL GROUP LIMITED
Commercial Services & Supplies – Overnight Price: $0.81
Canaccord Genuity rates ((DGL)) as Downgrade to Speculative Buy from Buy (1) –
Canaccord Genuity was disappointed with the update from DGL Group as it pointed to materially lower EBITDA guidance, stemming from higher costs across the business. Still, on the positive side, strong demand continues for services and there is robust cash conversion.
FY23 EBITDA guidance was revised down -10% which implies broadly flat earnings year-on-year. The broker turns its attention to FY24 with a number of influences on its modelling, including the impact of the higher costs in the second half and the incremental contribution from FY23 acquisitions.
While investors may prefer to wait for a more detailed outlook at the August results Canaccord Genuity believes the shares offer value at the current rating, which is downgraded to Speculative Buy from Buy. Target is reduced to $1.55 from $2.85.
This report was published on June 16, 2023.
Target price is $1.55 Current Price is $0.81 Difference: $0.74
If DGL meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $1.13, suggesting upside of 39.9%(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 10.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 8.10.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.9, implying annual growth of -13.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.1.
Forecast for FY24:
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of 8.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 10.13.How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.2, implying annual growth of -7.9%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 9.9.
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources
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