A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses for 26 June.
Brokers have been busy reassessing their valuations on Qantas (QAN) after the company's trading update yesterday, and Cochlear (COH) after its annoucement of a $800m share placement.
| Aventus Group |
AVN |
Macquarie downgrades Aventus Group (AVN) rating from outperform to neutral. Lowers price target from $3.45 to $2.43. Cites bsolute gearing levels are high versus peers. |
| Accent Group Limited |
AX1 |
Citi lowers Accent Group Limited (AX1) price target from $1.53 to $1.55. Retains neutral rating. Notes company continues to dominate its category, but faces some uncertainty in its outlook. Medium term outlook could be impacted by "younger customer base is likely to be significantly impacted by the conclusion of JobKeeper". |
| Brambles Limited |
BXB |
Citi retains buy rating on Brambles Limited (BXB). Lowers price target from $14.60 to $12.30. Expects that Brambles could see up to US$160m in additional cash flow in FY20 from lower expenditure. |
| Coca-Cola Amatil Limited |
CCL |
Citi retains buy rating on Coca-Cola Amatil Limited (CCL). Expects both volume and earnings before interest and taxes (EBIT) down by 8% in H2 2020, not as bad as down 14% and 30% drops respectively from H1. |
| Cochlear Limited |
COH |
Macquarie lowers Cochlear Limited (COH) price target from $220 to $196. Retains outperform rating. Predicts recently proposed $800m placement will provide sufficient liquidity to cope with the subdued activity due to Covid-19. |
| Cochlear Limited |
COH |
Morgan Stanley retains overweight rating on Cochlear Limited (COH). Lowers price target from $219 to $187. Notes current share price weakness likely opportunity to build positions. |
| Cochlear Limited |
COH |
Credit Suisse retains neutral rating on Cochlear Limited (COH). Lowers price target from $197 to $190. |
| Cochlear Limited |
COH |
UBS lowers Cochlear Limited (COH) price target from $158 to $145. Retains sell rating. Notes earnings forecasts remain positive but there may be possible downside to operating cash flow. |
| Csl Limited |
CSL |
Jefferies raises Csl Limited (CSL) price target from $272 to $275. |
| Crown Resorts Limited |
CWN |
Citi upgrades Crown Resorts Limited (CWN) rating from neutral to buy. Lowers price target from $12.10 to $8.20. Broker is confident in FY22 outlook, current valuation. |
| Freedom Foods Group Limited |
FNP |
Citi downgrades Freedom Foods Group Limited (FNP) rating from buy to neutral. Lowers price target from $5.30 to $3.27. Describes "plethora of issues that were beyond our expectation" after 25 June press conference. May need to sell non-core assets and raise equity. |
| James Hardie Industries Plc |
JHX |
Jefferies upgrades James Hardie Industries Plc (JHX) rating from outperform to hold. |
| Qantas Airways Limited |
QAN |
Jefferies lowers Qantas Airways Limited (QAN) price target from $6.20 to $5.31. Says QAN's cost reduction plan puts airline in a better position to emerge stronger after COVID-19. |
| Qantas Airways Limited |
QAN |
Citi raises Qantas Airways Limited (QAN) price target from $3.70 to $4.60. |
| Qantas Airways Limited |
QAN |
Morgan Stanley raises Qantas Airways Limited (QAN) price target from $5.20 to $5.30. Retains overweight rating. Sees upside from lower fuel prices and likely improvement in demand post-shutdowns/travel restrictions. |
| Rio Tinto Limited |
RIO |
UBS retains neutral rating on Rio Tinto Limited (RIO). |
| South32 Limited |
S32 |
UBS retains buy rating on South32 Limited (S32). |
Back