Broker Notes: Why analysts name Domino's, APM and DGL to buy now?
$Domino's Pizza Enterprises Ltd (DMP.AU)$: JPMorgan has an overweight rating and A$99.00 target price on the stock.
Domino's Pizza Enterprises' imposition of a 6% service fee on delivered orders in Australia shows the fast-food franchiser is prioritizing unit economics over volume, JPMorgan analyst Bryan Raymond says. The fee could generate about A$40 million in incremental revenue, which equates to about 2.8% of sales or about 9% of labor costs in Australia and New Zealand, Raymond says in a note to clients.
$APM Human Services International Pty (APM.AU)$: UBS maintains a buy rating on the stock and lifts target price by 2.9% to A$3.60.
The lack of a trading update from APM Human Services is taken by UBS analyst Tim Plumbe as an indication that there has been no material change to the company's guidance. APM announced a debt refinancing after its 2022 fiscal year ended on June 30 and Plumbe reasons that the timing, coupled with the absence of an update, indicates that its prospectus forecasts still hold.
$DGL Group Ltd (DGL.AU)$: Bell Potter maintains a buy rating on the stock and trims target price 19% to A$3.50 to reflect lower valuations across small industrial stocks.
Australian customs data could point to strong demand for chemicals firm DGL, Bell Potter says.
Domino's Pizza Enterprises' imposition of a 6% service fee on delivered orders in Australia shows the fast-food franchiser is prioritizing unit economics over volume, JPMorgan analyst Bryan Raymond says. The fee could generate about A$40 million in incremental revenue, which equates to about 2.8% of sales or about 9% of labor costs in Australia and New Zealand, Raymond says in a note to clients.
$APM Human Services International Pty (APM.AU)$: UBS maintains a buy rating on the stock and lifts target price by 2.9% to A$3.60.
The lack of a trading update from APM Human Services is taken by UBS analyst Tim Plumbe as an indication that there has been no material change to the company's guidance. APM announced a debt refinancing after its 2022 fiscal year ended on June 30 and Plumbe reasons that the timing, coupled with the absence of an update, indicates that its prospectus forecasts still hold.
$DGL Group Ltd (DGL.AU)$: Bell Potter maintains a buy rating on the stock and trims target price 19% to A$3.50 to reflect lower valuations across small industrial stocks.
Australian customs data could point to strong demand for chemicals firm DGL, Bell Potter says.
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