Australian Broker Moves 27 July

A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 27 July.

In today's broker moves, nickel miner and producer Western Areas gets some attention after its June quarter update. Views from the big brokers were mixed with two price target increases and two price target decreases.

Insurer IAG was also in the spotlight after it warned the market of softening margins and lower investment returns due to the impact of the covid-19 pandemic. Brokers were more aligned on this one, all five of them lowered their price targets.

AGL Energy Limited.	AGL	Morgan Stanley downgrades AGL Energy Limited. (AGL) rating from equalweight to underweight. Lowers price target from $18.68 to $15.68. Expects margins to come under pressure as gas retailers fight price war.
ALS Limited	ALQ	Morgan Stanley resumes overweight rating on ALS Limited (ALQ). Resumes $8.80 price target. Predicts lower margins, but possible value in stock at current levels.
Afterpay Limited	APT	Citi retains neutral rating on Afterpay Limited (APT). Retains $72.20 price target. Broker believes new loyalty program as positive and expects it to be a "key step" in further monetising APT's user base.
Alliance Aviation Services Limited	AQZ	Morgans initiates add rating on Alliance Aviation Services Limited (AQZ). Initiates $3.54 price target. Broker likes company's track record in securing new business.
Brickworks Limited	BKW	Citi raises Brickworks Limited (BKW) price target from $14.20 to $19.
Boral Limited.	BLD	Citi downgrades Boral Limited. (BLD) rating from buy to neutral. Raises price target from $3 to $4.22. Cites challenging earnings outlook.
Bank Of Queensland Limited.	BOQ	Jefferies lowers Bank Of Queensland Limited. (BOQ) price target from $4.45 to $4.15.
City Chic Collective Limited	CCX	Citi raises City Chic Collective Limited (CCX) price target from $2.85 to $3.40. Retains neutral rating. Broker likes sales and earnings growth profile.
Cardno Limited	CDD	Morgans lowers Cardno Limited (CDD) price target from $0.594 to $0.565. Retains add rating. Is pleased with reduction in debt, but lowers earnings estimates.
Cooper Energy Limited	COE	Credit Suisse lowers Cooper Energy Limited (COE) price target from $0.44 to $0.4. Retains neutral rating. Blames expected lower cashflows due to impact of covid-19 pandemic.
CSR Limited	CSR	Citi upgrades CSR Limited (CSR) rating from neutral to buy. Raises price target from $3.95 to $4.30. Broker likes relative valuation to peers.
Domain Holdings Australia Limited.	DHG	Credit Suisse raises Domain Holdings Australia Limited. (DHG) price target from $2.90 to $3.60. Retains outperform rating. Predicts impact of second wave of Vic lockdowns will not have as big an impact as first.
Domino's Pizza Enterprises Limited	DMP	Citi raises Domino's Pizza Enterprises Limited (DMP) price target from $47.8 to $55.20. Cites strong demand growth in some of its markets, particularly Japan.
Emeco Holdings Limited	EHL	Jefferies lowers Emeco Holdings Limited (EHL) price target from $1.28 to $1.20.
Gold Road Resources Limited	GOR	Macquarie downgrades Gold Road Resources Limited (GOR) rating from neutral to underperform. Raises price target from $1.70 to $1.80. Is pleased with balance sheet improvement, but downgrades on basis of recent share price strength undermining value.
GWA Group Limited.	GWA	Citi lowers GWA Group Limited. (GWA) price target from $4 to $2.90.
Galaxy Resources Limited	GXY	Macquarie raises Galaxy Resources Limited (GXY) price target from $0.35 to $0.40. Retains underperform rating. Blames continuing challenges facing lithium market.
Insurance Australia Group Limited	IAG	Citi lowers Insurance Australia Group Limited (IAG) price target from $6.60 to $6.15. Retains buy rating. Blames uncertain short term outlook, noting it is "clouded in significant uncertainty". Cuts FY20 earnings by 36%, FY21 by 8%, and FY22 by 4%. Retains buy rating on the basis of recent share price falls, means long term value at these prices.
Insurance Australia Group Limited	IAG	Morgan Stanley lowers Insurance Australia Group Limited (IAG) price target from $7 to 6.55.
Insurance Australia Group Limited	IAG	Credit Suisse lowers Insurance Australia Group Limited (IAG) price target from $6.40 to $6.25. Retains outperform rating. Cites compelling value at current price level.
Insurance Australia Group Limited	IAG	Macquarie lowers Insurance Australia Group Limited (IAG) price target from $5.70 to $5.50. Retains neutral rating. Sees continued headwinds for business.
Insurance Australia Group Limited	IAG	UBS lowers Insurance Australia Group Limited (IAG) price target from $6.50 to $6.10. Retains buy rating. Broker believes there is still value in the stock, as expects business conditions to improve in H2 CY20.
James Hardie Industries Plc	JHX	Citi raises James Hardie Industries Plc (JHX) price target from $27.50 to $32.90.
Karoon Energy Ltd	KAR	Morgans raises Karoon Energy Ltd (KAR) price target from $1.13 to $1.50. Retains add rating. Describes Buana transaction as de-risking, KAR should not require debt to fund.
Mineral Resources Limited	MIN	Macquarie raises Mineral Resources Limited (MIN) price target from $23.05 to $26.50. Retains outperform rating. Cites improved pricing dynamics. Impressed with record result in iron ore, sees further upside.
Monadelphous Group Limited	MND	Morgan Stanley resumes equalweight rating on Monadelphous Group Limited (MND). Resumes $10.30 price target.
Megaport Limited	MP1	UBS lowers Megaport Limited (MP1) price target from $14.05 to $13.85. Retains neutral rating. Downgrades earnings forecasts, cites worse than expected elements of June qtr trading update.
Origin Energy Limited	ORG	Morgan Stanley lowers Origin Energy Limited (ORG) price target from $6.33 to $6.14. Retains equalweight rating. Expects margin headwinds.
Rea Group Ltd	REA	Credit Suisse raises Rea Group Ltd (REA) price target from $94.50 to $110.30. Retains neutral rating. Broker likes possibility of price increases as listings recover.
Reece Limited	REH	Citi downgrades Reece Limited (REH) rating from neutral to sell. Lowers price target from $8.85 to $8.55. Blames slower growth in US markets as pandemic impact drags on.
Sonic Healthcare Limited	SHL	DNB Markets upgrades Sonic Healthcare Limited (SHL) rating from hold to buy.
Santos Limited	STO	Macquarie raises Santos Limited (STO) price target from $5.50 to $5.80. Retains neutral rating.
Telstra Corporation Limited.	TLS	Zacks downgrades Telstra Corporation Limited. (TLS) rating from buy to hold. Cites impact of recent share price appreciation on valuation.
West African Resources Limited	WAF	Macquarie raises West African Resources Limited (WAF) price target from $1 to $1.1. Retains neutral rating. Expects increasing production growth.
Western Areas Limited	WSA	Citi raises Western Areas Limited (WSA) price target from $2.50 to $2.70. Retains neutral rating. Notes nickel pricing environment leaves little upside in prices, but likes WSA cash flows.
Western Areas Limited	WSA	Credit Suisse raises Western Areas Limited (WSA) price target from $2.25 to $2.40. Retains neutral rating. Notes WSA is progressing well.
Western Areas Limited	WSA	Macquarie lowers Western Areas Limited (WSA) price target from $3 to $2.80. Retains outperform rating. Blames lower resource indication and grades reported in June qtr results.
Western Areas Limited	WSA	Morgan Stanley retains overweight rating on Western Areas Limited (WSA). Retains $2.50 price target.
Western Areas Limited	WSA	UBS lowers Western Areas Limited (WSA) price target from $2.85 to $2.60. Retains neutral rating. Blames lower expected earnings on weaker than expected June qtr report.