Analysts have been busy adjusting their financial models and recommendations during earnings season this month.
Two ASX dividend stocks that analysts remain positive on post-results releases are listed below. Here's what they are saying about them:
Baby Bunting Group Ltd (ASX: BBN)
Morgans thinks investors should be sticking with this baby products retailer despite its underwhelming performance during the first half. It has retained its add rating and $2.00 price target. The broker said:
It was a tough half for BBN, with the consumer under pressure and price competition intense. […] We've made no major changes to our estimates with our FY24 NPAT forecast coming down 2%. We continue to believe BBN will grow earnings in FY25 as its simpler price architecture and greater focus on value start to drive the top line. We retain an Add rating.
Morgans expects dividends per share of 6 cents in FY 2024 and 9.8 cents in FY 2025. Based on the current Baby Bunting share price, this equates to fully franked yields of 3.7% and 6%, respectively.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs think that this supermarket giant could be an ASX dividend stock to buy right now. The broker has responded to its results release by retaining its buy rating with a $40.40 price target.
Goldman remains positive despite the negative news flow which has been weighing on its shares. It said:
WOW reported 1H24 with +10% EBIT in AU Foods YoY the key bright spot, though this was dragged by weaker-than-expected H2 first 7 weeks AU Foods sales growth of +1.5% and further guidance of a slower EBIT growth in 2H. Additionally, the ongoing ACCC pricing inquiry and earlier-than-expected announcement of CEO Brad Banducci's retirement weighed on the share price. Against this, we retain our positive view on WOW. […] We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers.
As for income, the broker is forecasting dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025. Based on its current share price, this will mean fully franked yields of 3.3% and 3.6%, respectively.
