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ASX Live Coverage Summary – Wednesday, June 18
Key Updates
Welcome to our live coverage of the ASX for the day. We anticipate a busy pre-market session followed by periodic updates until 2:00 pm AEST. Feedback is always appreciated to enhance our coverage experience.
Sims Elevates FY26 EBIT Forecast
9:19 am
Sims has revised its FY26 Underlying EBIT guidance upwards from an initial range of $350-400 million to $420-435 million. This increase is mainly attributed to strong performance from its North American metals operations and increased demand for Sims Lifecycle Services in the data centre sector.
- New EBIT Guidance: $420-435 million (midpoint reflects a 17% enhancement).
- Key Drivers: Increased earnings in North American metals and favourable market conditions in Lifecycle Services.
- Concerns: Despite a strong YTD stock performance (up 63.7%), analysts express caution regarding the sustainability of Lifecycle Services earnings.
[Company Profile: Sims (SGM)]
Karoon Energy Target Slashed by Analysts
9:04 am
Karoon Energy shares dropped 11.5% following a FY26 production guidance downgrade.
- Macquarie: Downgraded to Underperform with a target price cut to $1.50 from $2.00.
- Morgans: Reduced target from $1.90 to $1.67.
- Production Guidance Changes:
- Overall production guidance has been cut by 11% to 7.2-8.2 MMboe.
- Significant reductions in specific projects, with Who Dat’s production guidance cut by 41%.
ARN Media and Kyle Sandilands Settle Lawsuit
9:02 am
ARN Media has settled a legal dispute with Kyle Sandilands for $12 million, marking the end of their collaboration.
- Settlement Details: $12.09 million in cash, payable over several years.
- Advertising Services: ARN will provide an additional $1.5 million in advertising over three years.
- Revenue Share: A 19.9% revenue contribution from Sandilands’ new ventures for up to three years.
[Company Profile: ARN Media (A1N)]
Fletcher Building’s FY EBIT Above Consensus
9:01 am
Fletcher Building has forecasted FY EBIT of NZ$375-380 million, comfortably surpassing market consensus.
- Debt Situation: Following asset divestments, net debt is expected to be just above the mid-range of the NZ$400-900 million target.
- Market Challenges: Rising costs may delay or cancel new projects, particularly in commercial sectors.
[Company Profile: Fletcher Building (FBU)]
SpaceX Acquires Anysphere for $60 Billion
8:59 am
SpaceX has confirmed a $60 billion all-stock acquisition of AI coding company Anysphere, expected to close by Q3 pending regulatory approval.
- Transaction Background: SpaceX had an option for this acquisition established earlier this year.
- Company Performance: Anysphere is achieving approximately $2.6 billion in annualised revenue.
Brent Crude Prices Fall Below $80
8:53 am
Brent crude prices have closed at $79.33 a barrel, marking a 4.8% drop and a 16.5% decline over four trading sessions.
Goldman Sachs and Morgan Stanley Adjust Oil Forecasts
8:47 am
Both financial institutions have lowered their Brent crude price forecasts following the recent US-Iran interim deal.
- Goldman Sachs: Revised Q4 forecast to $80 from $90 per barrel, expecting a return to pre-war export levels.
- Morgan Stanley: Adjusted forecasts down to $90 in Q3 and $80 in Q4.
Additional Market Insights
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Qatar’s LNG Capacity Plans: QatarEnergy aims to achieve rapid LNG output recovery, targeting 80% capacity within two months of the Strait of Hormuz reopening.
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US Debt Issuance Surge: Companies, particularly Nvidia, are seizing the opportunity to raise over $40 billion in debt following the easing of credit conditions due to the Iran deal.
- US Market Trends: The S&P 500 and Nasdaq saw slight declines as profit-taking occurred after three days of gains in semiconductor stocks.
Overall, this Wednesday showcases significant movements across various sectors, including strategic acquisitions, production forecasts, and ongoing market adjustments as global geopolitical dynamics continue to evolve. Stay tuned for further updates throughout the day!
