A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 14 July.
A relatively quiet past 24 hours for broker moves. Oilsearch received attention after announcing impairments of US$250-300m relating to its PNG exploration projects. Morgan Stanley commenced coverage of electrical appliance manufacturer Breville Group (BRG), rating the stock "overweight" with a $28 price target. Rising metails prices continue to shine the spotlight on major miners BHP and Rio Tinto, with RIO scoring a nice target price increase from $105 to $111 from Morgans.
| Beach Energy Limited |
BPT |
Morgans upgrades Beach Energy Limited (BPT) rating from hold to add. Retains $1.66 price target. Sees compelling value at current price level. |
| Breville Group Limited |
BRG |
Morgan Stanley initiates overweight rating on Breville Group Limited (BRG). Initiates $28 price target. Cites attractive, scalable business model, and company's recent update citing minimal covid-19 impact. |
| Credit Corp Group Limited |
CCP |
Morgans raises Credit Corp Group Limited (CCP) price target from $18.50 to $19.10. Retains add rating. Says long term potential to grow earnings is worth short term risks. |
| Estia Health Limited |
EHE |
Jefferies lowers Estia Health Limited (EHE) price target from $1.70 to $1.50. Retains hold rating. Notes impact of covid-19 on impairments, and general uncertainty for aged care moving forwards. |
| Ioof Holdings Limited |
IFL |
Citi raises Ioof Holdings Limited (IFL) price target from $4.50 to $5.15. Retains neutral rating. Notes lower margins on inflows in the near term, but expects IFL to be resilient. |
| National Australia Bank Limited |
NAB |
Morgan Stanley lowers National Australia Bank Limited (NAB) price target from $18.50 to $18. Retains equalweight rating. Notes downside risk for business loan growth. |
| Northern Star Resources Ltd |
NST |
Morgan Stanley lowers Northern Star Resources Ltd (NST) price target from $12.20 to $11.95. Retains equalweight rating. Expects higher production numbers, but reduces earnings forecasts for FY20-22 |
| Oil Search Limited |
OSH |
Macquarie lowers Oil Search Limited (OSH) price target from $3.85 to $3.80. Retains outperform rating. Broker believes OSH offers attractive exposure to any recovery in oil prices. Notes high quality projects. |
| Oil Search Limited |
OSH |
UBS retains buy rating on Oil Search Limited (OSH). Retains $4.30 price target. Expects OSH is moving its focus away from exploration. Market likely to welcome this change in strategy. |
| Rio Tinto Limited |
RIO |
Morgans raises Rio Tinto Limited (RIO) price target from $105 to $111. Retains add rating. Describes RIO as a compelling investment case given strong earnings, and because likely to maintain dividends, yield. Notes possible risk is if metals prices fall. |
| The Star Entertainment Group Limited |
SGR |
Citi retains buy rating on The Star Entertainment Group Limited (SGR). Retains $3.50 price target. Expects unlikely for QLD government to grant second GC casino license, clearly a positive for company. |
Back