Australian Broker Moves 12 Aug

A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 12 August.

Today the big brokers continue to react to company results. Today in particular, Challenger Limited (CGF), James Hardie Industries Plc (JHX), and Sydney Airport (SYD) are each in focus.

Brokers were positive towards JHX's Q1 update, noting it stands to continue to benefit from the rebound in the US housing market. They were generally positive towards SYD's capital raising, noting it will assist in managing its credit position. CGF's FY20 results were not so well received, as most brokers saw these as a miss.

Adairs Limited	ADH	EL&C Baillieu raises Adairs Limited (ADH) price target from $2.20 to $3.20. Retains hold rating. Cites increases in consumer spending, strong online sales.
Ansell Limited	ANN	UBS raises Ansell Limited (ANN) price target from $36.75 to $38.75. Retains neutral rating. Cites exposure to healthcare, but also sees improvement in manufacturing division.
Challenger Limited	CGF	Goldman Sachs lowers Challenger Limited (CGF) price target from $5.07 to $4.63. Retains neutral rating. Says FY20 results 3% below expectations. Outlook softer than expected, sees continued risks to growth.
Challenger Limited	CGF	Credit Suisse lowers Challenger Limited (CGF) price target from $4.50 to $4.25. Retains neutral rating. Cites worse than expected FY20 results. Lowers forecasts.
Challenger Limited	CGF	Morgan Stanley lowers Challenger Limited (CGF) price target from $5.40 to $4.25. Retains equalweight rating. Cites worse than expected FY20 results. Lowers forecasts.
Challenger Limited	CGF	Citi lowers Challenger Limited (CGF) price target from $5.25 to $4. Retains neutral rating. Blames lower than expected guidance, volatile markets.
Charter Hall Social Infrastructure Reit	CQE	Goldman Sachs raises Charter Hall Social Infrastructure Reit (CQE) price target from $3.16 to $3.23. Retains buy rating. Says FY20 results 5% above expectations. Impact of covid-19 likely over estimated by market. Valuation attractive.
GPT Group	GPT	Credit Suisse lowers GPT Group (GPT) price target from $4.56 to $4.29. Retains outperform rating. Cites worse than expected FY20 results. Lowers forecasts.
Incitec Pivot Limited	IPL	Citi retains buy rating on Incitec Pivot Limited (IPL). Retains $2.40 price target. Notes strong demand and higher prices of urea.
James Hardie Industries Plc	JHX	Jefferies raises James Hardie Industries Plc (JHX) price target from $27.20 to $31.10. Retains hold rating. Expects low mortgage rates, work from home ability and low housing inventory to bolster housing construction.
James Hardie Industries Plc	JHX	Credit Suisse raises James Hardie Industries Plc (JHX) price target from $30.90 to $34.90. Retains outperform rating. Cites better than expected FY20 results. Raises forecasts.
James Hardie Industries Plc	JHX	Morgan Stanley raises James Hardie Industries Plc (JHX) price target from $32 to $35.90. Retains overweight rating. Is pleased with co's Q1 results, also, guidance. Sees benefits ongoing from US housing.
James Hardie Industries Plc	JHX	UBS raises James Hardie Industries Plc (JHX) price target from $34 to $35.40. Retains buy rating. Broker likes improving US housing market fundamentals.
Kogan.Com Ltd	KGN	UBS raises Kogan.Com Ltd (KGN) price target from $12 to $21. Retains neutral rating. Broker likes July sales update. Notes, KGN is well positioned to continue to grow its earnings.
New Century Resources Limited	NCZ	Credit Suisse lowers New Century Resources Limited (NCZ) price target from $0.50 to $0.45. Retains outperform rating. Blames revised pricing and operational expectations.
Saracen Mineral Holdings Limited	SAR	Citi lowers Saracen Mineral Holdings Limited (SAR) price target from $6.20 to $6.10. Retains neutral rating.
Shopping Centres Australasia Property Group	SCP	Credit Suisse lowers Shopping Centres Australasia Property Group (SCP) price target from $2.31 to $2.21. Retains neutral rating. Blames VIC lockdown.
Sigma Healthcare Limited	SIG	Citi raises Sigma Healthcare Limited (SIG) price target from $0.75 to $0.80. Retains buy rating. Cites sale of two distribution centres, provides financial flexibility.
Sydney Airport	SYD	Jefferies lowers Sydney Airport (SYD) price target from $6.18 to $6.07. Notes challenges, but capital raising is a positive as will enable pay down of debt and reduction in interest costs.
Sydney Airport	SYD	Credit Suisse retains underperform rating on Sydney Airport (SYD). Retains $4.50 price target.
Sydney Airport	SYD	Morgan Stanley lowers Sydney Airport (SYD) price target from $6.67 to $6.39. Retains equalweight rating. Broker believes capital raising is a positive.
Wisetech Global Limited	WTC	Citi downgrades Wisetech Global Limited (WTC) rating from neutral to sell. Lowers price target from $22.60 to $18.40. Blames challenging economic conditions. Sees downside risk to earnings.