Today's is a Special Edition containing only Goldman Sachs updates on ASX-listed resources companies. This Report should be read in conjunction with the story ****, published a few moments ago.
An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listedequities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArenahas now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listedstocks, also enlarging the number of stocks that make up the FNArenauniverse.
One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availabilityofsuitable 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 publicationmay not be up to date, or yet awaiting another update by FNArena'steam 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)
AWC BHP BSL CIA CRN DRR FMG ILU LYC MIN NHC OZL RIO S32 SFR SGM WHC
Aluminium, Bauxite & Alumina - Overnight Price: $1.25
Goldman Sachs rates ((AWC)) as Upgrade to Neutral from Sell (3) -
Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.
The broker lowers aluminium and nickel price forecasts after reducing European demand forecasts. Its noted the industrial supply chain is currently undergoing an aggressive destocking cycle, given extreme uncertainties over demand conditions into winter.
Despite the lower aluminium price forecasts, Goldman increases its rating for Alumina Ltdto Neutral from Sell on valuation, as shares have fallen by -22% since June 9, when the rating was originally downgraded to Sell.
The target price falls to $1.30 from $1.35.
This report was published on October 11, 2022.
Target price is $1.30 Current Price is $1.25 Difference: $0.05 If AWC meets the Goldman Sachs target it will return approximately 4% (excluding dividends, fees and charges). Current consensus price target is $1.66, suggesting upside of 32.8%(ex-dividends) The company's fiscal year ends in December.
Goldman Sachs forecasts a full year FY22 dividend of 8.45 cents and EPS of 6.05 cents. At the last closing share price the estimated dividend yield is 6.76%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.65.
How do these forecasts compare to market consensus projections?
Goldman Sachs forecasts a full year FY23 dividend of 6.90 cents and EPS of 7.74 cents. At the last closing share price the estimated dividend yield is 5.52%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.15.
How do these forecasts compare to market consensus projections?
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.4 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Goldman Sachs rates ((BHP)) as Buy (1) -
Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen.
Overall, the broker prefers bulks over base metals on a three-to-six-month view, based on recent conversations with Chinese steel mills, which suggest a recentuptick in demand.
Goldman's lower copper price forecast is partly offset by currency movements.
The broker increases its price target forBHP Group to $43.50 from $40.50. It's felt a valuation premium to global mining peers will be maintained. Buy.
This report was published on October 11, 2022.
Target price is $43.50 Current Price is $39.92 Difference: $3.58 If BHP meets the Goldman Sachs target it will return approximately 9% (excluding dividends, fees and charges). Current consensus price target is $41.35, suggesting upside of 3.6%(ex-dividends) The company's fiscal year ends in June.
Current consensus EPS estimate is 482.6, implying annual growth of N/A. Current consensus DPS estimate is 352.7, implying a prospective dividend yield of 8.8%. Current consensus EPS estimate suggests the PER is 8.3.
Current consensus EPS estimate is 432.5, implying annual growth of -10.4%. Current consensus DPS estimate is 318.9, implying a prospective dividend yield of 8.0%. Current consensus EPS estimate suggests the PER is 9.2.
This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values. Market Sentiment: 0.3 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Steel & Scrap - Overnight Price: $16.25
Goldman Sachs rates ((BSL)) as Buy (1) -
Goldman Sachs anticipates a tough period for base metals and steel as European and global demand continues to weaken and the US dollar continues to strengthen. Bulks are preferred over base metals on a three-to-six month view.
The broker lowers its target forBlueScope Steel to $20.90 from $24.30 on lower US hot-rolled coil (HRC) steel prices partially offset by lowerscrap prices and a lower Australian dollar.
This report was published on October 11, 2022.
Target price is $20.90 Current Price is $16.25 Difference: $4.65 If BSL meets the Goldman Sachs target it will return approximately 29% (excluding dividends, fees and charges). Current consensus price target is $20.83, suggesting upside of 28.2%(ex-dividends) The company's fiscal year ends in June.
Current consensus EPS estimate is 249.9, implying annual growth of -56.3%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 6.5.
Current consensus EPS estimate is 213.3, implying annual growth of -14.6%. Current consensus DPS estimate is 50.0, implying a prospective dividend yield of 3.1%. Current consensus EPS estimate suggests the PER is 7.6.
Market Sentiment: 0.7 All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE
Oct 14 2022 - Daily Market Reports
Oct 14 2022 - Daily Market Reports
© FNArena 2022. All Rights Reserved. No portion of this website may be reproduced, copied or in any way re-used without written permission from FNArena. All subscribers should read our terms and conditions, click here