Australian Broker Moves 22 July

A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 22 July.

BHP was always going to be the biggest target in the big broker's spotlights today, after releasing its June quarter production report yesterday. BHP reported production largely in-line with expectations, but it was its guidance that disappointed investors.

Other stocks getting attention after trading updates include energy company Oilsearch (OSH), and gold miners Perseus Mining (PRU) and Saracen Minerals (SAR).

BHP Group Limited	BHP	Citi downgrades BHP Group Limited (BHP) rating from buy to neutral. Retains $40 price target. Notes lower guidance, concerns over outlook in June quarterly production report.
BHP Group Limited	BHP	Jefferies retains hold rating on BHP Group Limited (BHP). Says production report was in-line with broker's prior guidance, but FY21 production guidance was weaker than expected. 12 month outlook is increasingly positive.
BHP Group Limited	BHP	Credit Suisse retains neutral rating on BHP Group Limited (BHP). Retains $37 price target. Notes guidance across most divisions was lower than expected, but is positive on potential dividend payout.
BHP Group Limited	BHP	Macquarie raises BHP Group Limited (BHP) price target from $38 to $39. Retains outperform rating. Says June quarter report was mixed, guidance was weaker than expected. Retains rating on higher iron ore prices which could be worth up to 50% higher earnings if maintained.
BHP Group Limited	BHP	Morgan Stanley retains overweight rating on BHP Group Limited (BHP). Retains $37.45 price target. Notes production and guidance in line with expectations.
BHP Group Limited	BHP	Morgans downgrades BHP Group Limited (BHP) rating from add to hold. Raises price target from $36.70 to $37.20. Describes June quarter production report as strong, but notes recent share price appreciation.
BHP Group Limited	BHP	UBS retains buy rating on BHP Group Limited (BHP). Retains $40 price target. Expects consensus earnings to fall by up to 5% as a result of June quarter update.
Downer Edi Limited	DOW	Credit Suisse raises Downer Edi Limited (DOW) price target from $4 to $4.70. Retains outperform rating. Cites strong results in its transport and facilities segments.
Eclipx Group Limited	ECX	UBS raises Eclipx Group Limited (ECX) price target from $1.45 to $2.05. Retains buy rating. Expects strong used car market, likes balance sheet position.
Kogan.Com Ltd	KGN	Credit Suisse raises Kogan.Com Ltd (KGN) price target from $11.72 to $16.88. Retains neutral rating. Notes June trading update was in-line with market expectations, but expects costs to increase to achieve further growth.
Orica Limited	ORI	Citi retains buy rating on Orica Limited (ORI). Retains $18.30 price target. Cites company's dominant position in the global explosives sector.
Oil Search Limited	OSH	Citi lowers Oil Search Limited (OSH) price target from $3.77 to $3.76. Retains neutral rating. Notes revenue was -18% below expectations.
Oil Search Limited	OSH	Credit Suisse raises Oil Search Limited (OSH) price target from $2.45 to $3.20. Retains neutral rating. Expects current quarter's woes largely due to one-offs, should see improvement from here.
Oil Search Limited	OSH	Macquarie raises Oil Search Limited (OSH) price target from $3.80 to $3.90. Retains outperform rating. Broker believes OSH is top pick in energy sector. Sees possible industry consolidation.
Oil Search Limited	OSH	Morgans raises Oil Search Limited (OSH) price target from $2.80 to $2.75. Retains hold rating. Describes PNG performance as strong.
Oil Search Limited	OSH	UBS retains buy rating on Oil Search Limited (OSH). Retains $4.30 price target. Says second quarter production beat expectations, but sales volumes missed. Now sees a loss in FY20.
Perseus Mining Limited	PRU	Credit Suisse downgrades Perseus Mining Limited (PRU) rating from neutral to underperform. Raises price target from $1.11 to $1.30. Blames disappointing results from Edikan. Results below estimates. But, notes potential upside from Sissingue.
Perseus Mining Limited	PRU	Macquarie downgrades Perseus Mining Limited (PRU) rating from neutral to underperform. Retains $1.25 price target. Says sales and costs better than expected, but FY21 guidance was not.
Resmed Inc	RMD	Credit Suisse raises Resmed Inc (RMD) price target from $26 to $27.50. Retains neutral rating. Notes risks to H2 earnings.
South32 Limited	S32	Morgans raises South32 Limited (S32) price target from $2.82 to $2.96. Retains add rating. Describes June quarter production report as better than expected. Says S32 represents attractive value.
Saracen Mineral Holdings Limited	SAR	Citi raises Saracen Mineral Holdings Limited (SAR) price target from $6.10 to $6.20. Retains neutral rating. Describes June quarter production report as positive.
Saracen Mineral Holdings Limited	SAR	Morgan Stanley raises Saracen Mineral Holdings Limited (SAR) price target from $4.85 to $5.25. Retains equalweight rating. Cites lower earnings forecasts due to declining grades at CDO.
Saracen Mineral Holdings Limited	SAR	UBS retains neutral rating on Saracen Mineral Holdings Limited (SAR). Retains $6.30 price target. Describes SAR as sector leader in terms of production growth, but also notes recent share price appreciation reduces value proposition.
Silver Lake Resources Limited	SLR	Macquarie upgrades Silver Lake Resources Limited (SLR) rating from neutral to outperform. Raises price target from $2.40 to $2.60. Says June quarter production report was positive. Guidance also better than expected.
Santos Limited	STO	Morgans lowers Santos Limited (STO) price target from $6.30 to $6. Retains add rating. Blames recent write-downs, reduction in oil price forecasts.
Santos Limited	STO	Morgan Stanley retains overweight rating on Santos Limited (STO). Retains $5 price target. Describes STO as best exposure to large cap energy.
Westgold Resources Limited.	WGX	Macquarie lowers Westgold Resources Limited. (WGX) price target from $3 to $2.70. Retains outperform rating. Blames lower than expected guidance.