Forum Topics News Summary DJ Australian Equities Roundup -- Market Talk 11 Apr 2025 15:06:05
Jimmy
Added 9 months ago

0453 GMT - Citi analyst Mathieu Chevrier would like more details on Ebos's acquisition of pet-medicine provider SVS. Chevrier tells clients in a note that the acquisition is in line with the pharmaceuticals supplier's long-standing M&A strategy, but that the New Zealand-based company didn't provide information on anticipated synergies, capital intensity or how SVS performed prior to the Covid-driven surge in pet ownership. Chevrier expects SVS, combined with Ebos's acquisition of the remaining 10% stake in its Transmedic unit, to be 1%-2% accretive to his fiscal 2026 EPS estimate. Citi has a sell rating and A$32.00 target price on Ebos's Australia-listed stock, which is down 5.1% at A$33.74. ([email protected])

0441 GMT - Citi analysts stay bullish on Aussie Broadband even though their 2028 revenue forecast falls short of the company's ambition. They tell clients in a note that they are looking for A$1.499 billion in 2028 revenue, which is about 6% below the Australian broadband provider's target. The Citi analysts think that management will need to lift operating expenses to deliver growth without sacrificing customers' service levels. However, they acknowledge that they are being conservative and see risks being tilted toward the upside. Citi keeps a buy rating and A$4.80 target price on the stock, which is up 1.6% at A$3.90. ([email protected])

0435 GMT - Australia's Netwealth is giving clear indication that it intends to double down on its attempt to capture the opportunity on offer, Wilsons analysts tell clients in a note. They observe that management's reiteration that they intend to focus on reinvestment in fiscal 2026 demonstrates confidence in the medium-term outlook. This is supported by improving cadence in net flows despite the current risk-off sentiment in markets, they say. Wilsons raises its target price for the stock by 10% to A$27.66 and keeps an overweight recommendation on the stock. Shares are down 5.35% at A$24.95. ([email protected])

0417 GMT - Aussie Broadband's bulls at Wilsons see the Australian broadband provider's 2028 targets as achievable, and even beatable. Analysts Ross Barrows and Lachlan Woods tells clients in a note that their forecasts largely reflect the company's newly announced goals, which include surpassing A$1.6 billion in annual revenue and recording an Ebitda margin higher than 12.5%. The pair expect to see deeper market penetration through things like increasing services per customer, increased automation and technology investment, and market-share gains at the expense of larger incumbents. Wilsons raises its target price 1.6% to A$5.16 and stays overweight on the stock, which is up 1.3% at A$3.89. ([email protected])

0412 GMT - Netwealth's positive 3Q update isn't enough to turn Bell Potter analyst Hayden Nicholson bullish on the stock. Despite healthy signs, he tells clients that any value on offer dissipated with the recent sharp recovery in shares of the wealth-platform operator. Nonetheless, Nicholson sees things to like in the Australian company's latest update. He points out that the negative impact of market volatility on funds under administration was less bad than feared, demonstrating a broader asset allocation. He also calls attention to positive momentum in average net account additions. Bell Potter raises its target price on the stock by 2.3% to A$26.40 and maintains a hold rating. Shares are down 5.0% at A$25.05. ([email protected])

0306 GMT - Jarden analysts stay positive on Telstra and its relatively defensive earnings profile despite the stock's significant overperformance of the past 12 months. Tom Beadle and Liam Robertson tell clients in a note that the Australian telecommunications provider's recurring broadband network payments from the country's government--which are inflation-linked--support their positive view of the stock. There are some risks to mobile revenues from cost-of-living pressures and slower population growth, but they don't see competition with the likes of TPG Telecom and Singapore Telecommunications-owned Optus becoming irrational. Jarden lifts its target price by 3.5% to A$4.45 and stays overweight on the stock, which is up 1.1% at A$4.45. ([email protected])

0229 GMT - The likelihood that WiseTech Global won't release its Container Transport Optimization product until late in the June half prompts its bull at Bell Potter to moderate his revenue forecasts. Analyst Chris Savage keeps a buy rating on the stock, but warns that there is even a chance that the logistics-software provider's new product will not be rolled out until the December half. He therefore takes a conservative view of the product's likely revenue contribution, which drives EPS forecast downgrades of 1% for fiscal 2025, 3% for fiscal 2026, and 4% for fiscal 2027. Bell Potter trims its target price 8.2% to A$112.50. Shares are down 2.1% at A$83.47. ([email protected])

2257 GMT -- Uranium producer Boss Energy is very well placed to beat FY2025 production guidance of 850,000 pounds of U3O8 after reporting drumming 295,800 pounds at the Honeymoon mine in 3Q, Macquarie analysts say in a note. "This is despite some minor challenges with the kiln and baghouse resulting in some downtime," the analysts say. They now expect FY2025 output of 912,000 pounds. Macquarie has an outperform rating and A$4.60 target on Boss. The analysts say it "offers strong leverage to a recovery in uranium spot prices and improving term structures. Boss last traded at A$2.62. ([email protected])

2216 GMT - Australian stocks look set to continue their whipsaw week, with futures pointing to a sharp opening reversal. ASX futures are down by 1.5% ahead of Friday's session, suggesting that the benchmark S&P/ASX 200 index will give back a chunk of the 4.5% gain it compiled on Thursday. That was its largest one-day advance since 2020. With the Trump administration's trade tariffs roiling global markets, the ASX 200 also logged its largest decline since 2020 this week. U.S. equities provided a soft lead after staging their own reversal. The DJIA lost 2.5%, the S&P 500 fell 3.5%, and the Nasdaq Composite tumbled 4.3%. ([email protected])

0640 GMT - Australia's S&P/ASX 200 closed 4.5% higher at 7709.6, bolting to its highest gain since March 2020, just three days after its largest loss in more than five years. Buyers piled in following President Trump's volte-face on many tariffs, with all but three ASX 200 stocks adding at least 1%. None finish Thursday in the red. Tech and commodity sectors led the gains, as risk appetite returned and worries of a multi-economy recession eased. Lithium stocks were standouts, with Liontown and Mineral Resources jumping 15% and 18%, respectively. Iron-ore miners BHP, Fortescue and Rio Tinto put on between 5.4% and 6.35%. The ASX 200 remains in correction territory, down 9.9% on its Feb. 14 peak. ([email protected])

(END) Dow Jones Newswires

6

RogueTrader
Added 9 months ago

Pretty dull week, XAO finished up a mere 4 points to 7853. Hopefully more exciting next week :) :)

8