A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 3 July.
In the spotlight today, online travel bookings company Webjet (WEB) after it announced a $100m placement yesterday. Also, Lendlease (LLC) enjoyed an upgrade to Buy from Goldman Sachs, and there are downgrades for Bluescope Steel (BSL) and HUB24 (HUB).
| Ansell Limited |
ANN |
UBS raises Ansell Limited (ANN) price target from $35 to $36.75. Retains neutral rating. Expects Ansell will likely experience growth in both of its divisions, given sustained demand for healthcare gloves as well. |
| Afterpay Limited |
APT |
RBC Capital Markets raises Afterpay Limited (APT) price target from $29 to $60. |
| Austal Limited |
ASB |
Citi retains buy rating on Austal Limited (ASB). Retains price target of $4.23. Cites ability to win new business from US Navy is under appreciated by market. |
| Brickworks Limited |
BKW |
UBS initiates buy rating on Brickworks Limited (BKW). Broker believes market is overlooking the upside from developing Oakdale Estate. |
| Bluescope Steel Limited |
BSL |
Morgan Stanley downgrades Bluescope Steel Limited (BSL) rating from equalweight to underweight. Lowers price target from $13.50 to $10. Cites conditions in the US. Describes as challenging with US steel industry under pressure. Predicts lower operating income for FY20 and FY21. |
| Hub24 Limited |
HUB |
Credit Suisse downgrades Hub24 Limited (HUB) rating from outperform to neutral. Raises price target from $10.20 to $12. Expects significant inflow and market share gains, but HUB may need to reduce platform fees. |
| Lendlease Group |
LLC |
Goldman Sachs retains buy rating on Lendlease Group (LLC). Retains $16.55 price target. Cites LLC selling 25% stake in the first tower of One Sydney Harbour to Mitsubishi Estate will lock in $100m post-tax gain for FY21 and reducing future funding requirements. management noted continued strong demand from capital partners for new opportunities and highlighted as likely drivers of near-term development origination profits. |
| Lovisa Holdings Limited |
LOV |
Citi lowers Lovisa Holdings Limited (LOV) price target from $5.85 to $5.75. Retains sell rating. Cites H1 FY21 sales decline of 14% on reduced foot traffic due to covid-19. Rollout of products in U.S and Europe also adversely impacted. Cuts FY20 NPATby 3%, but increases FY21 and FY22 NPAT by 14% and 12% respectively. |
| Lovisa Holdings Limited |
LOV |
Morgan Stanley retains equalweight rating on Lovisa Holdings Limited (LOV). Retains $6.50 price target. Says FY20 earnings below expectations, but balance sheet looks well-positioned. |
| Lynas Corporation Limited |
LYC |
ValuEngine upgrades Lynas Corporation Limited (LYC) rating from hold to buy. |
| Netwealth Group Limited |
NWL |
Credit Suisse downgrades Netwealth Group Limited (NWL) rating from neutral to underperform. Raises price target from $7.50 to $8.30. Predicts flatter earnings and declining revenue margin. |
| Rio Tinto Limited |
RIO |
Deutsche Bank raises Rio Tinto Limited (RIO) rating from neutral to buy. Notes Decarbonisation in the mining industry gives an advantage to low-carbon aluminium producers such as Rio Tinto. |
| Webjet Limited |
WEB |
Credit Suisse lowers Webjet Limited (WEB) price target from $4.50 to $3.80. Retains neutral rating. |
| Webjet Limited |
WEB |
Morgan Stanley retains underweight rating on Webjet Limited (WEB). Retains $3.30 price target. Notes high rate of cash burn. |
| Webjet Limited |
WEB |
Morgans raises Webjet Limited (WEB) price target from $3.20 to $3.39. Retains hold rating. Says recovery likely now pushed out to FY23. |
| Webjet Limited |
WEB |
Ord Minnett lowers Webjet Limited (WEB) price target from $4.86 to $4.51. Retains buy rating. Broker believes Webjet well-positioned for recovery in B2B spending. |
| Webjet Limited |
WEB |
UBS raises Webjet Limited (WEB) price target from $3.75 to $5.35. Retains buy rating. Notes short term uncertainty and volatility, but outlook has improved. |
| Westgold Resources Limited. |
WGX |
Macquarie raises Westgold Resources Limited. (WGX) price target from $2.90 to $3. Retains outperform rating. Cites better cash position. |
| Worley Limited |
WOR |
ValuEngine upgrades Worley Limited (WOR) rating from sell to hold. |
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