Australian Broker Moves 27 October

The big brokers have run the ruler over a number of key stocks over the last 24 hours.

Of particular note, was the takeover offer for Coca Cola Amatil from its European counterpart Coca Cola European Partners. The brokers were generally of the opinion that the $12.75 cash offer is all but a done deal. Most upped their price target to reflect the offer price.

Elsewhere, they were fairly muted towards Westpac's first half profit guidance and accompanying writedowns. The brokers were fairly comfortable that whilst the write-downs have adversely impacted the bank's capital position, a first half dividend remains a distinct possibility.
 

Adairs	ADH	UBS raises Adairs (ADH) price target from $3.30 to $4.00. Retains buy rating. Reacts positively to first half profit results. Notes better than expected, also notes momentum should continue.
Coca-Cola Amatil	CCL	Citi downgrades Coca-Cola Amatil (CCL) rating from buy to neutral.  Cites $12.75 takeover offer from CC European Partners. Expects offer will succeed, therefore downgrades rating.
Coca-Cola Amatil	CCL	Morgan Stanley raises Coca-Cola Amatil (CCL) price target from $9.25 to $12.75.  Reviews CC European Partners takeover offer. Sees as appropriately valued.
Coca-Cola Amatil	CCL	Jefferies raises Coca-Cola Amatil (CCL) price target from $10.00 to $12.75.  Reacts positively to $12.75 takeover bid from European counterpart.
Coca-Cola Amatil	CCL	Macquarie raises Coca-Cola Amatil (CCL) price target from $9.20 to $12.75. Retains neutral rating. Cites takeover offer from CC European Partners.
Cochlear	COH	Macquarie retains outperform rating on Cochlear (COH). Retains $241.00 price target. Notes increase in activity levels should support earnings.
CSR	CSR	Morgan Stanley upgrades CSR (CSR) rating from underweight to equalweight. Raises price target from $3.10 to $4.70. Anticipates continued improvement in operational environment, particularly residential construction. Expected earnings increased 18%.
Damstra	DTC	Morgan Stanley retains overweight rating on Damstra (DTC). Retains $2.00 price target. Reviews September quarter trading update, impressed by revenue growth and improving margins. Sees strong earnings growth continuing.
Evolution Mining	EVN	Citi upgrades Evolution Mining (EVN) rating from sell to neutral. Lowers price target from $5.40 to $5.50. Reacts positively to September quarter production report.
Flexigroup	FXL	UBS retains buy rating on Flexigroup (FXL). Retains $1.450 price target. Notes move into BNPL space is a sensible strategic shift.
Iluka Resources	ILU	UBS lowers Iluka Resources (ILU) price target from $10.00 to $5.50. Retains neutral rating. Cites demerger as reason for adjusting target price to reflect new value of retained assets.
Karoon Energy	KAR	Macquarie retains overweight rating on Karoon Energy (KAR). Retains $1.140 price target.
Nick Scali	NCK	Citi raises Nick Scali (NCK) price target from $9.80 to $10.10. Retains buy rating. Upgrades expected earnings by 3% in FY21 and by 8% in FY22 on the back of trading update. Co. is performing strongly and expects this to continue despite COVID-19.
Sims	SGM	Credit Suisse raises Sims (SGM) price target from $8.25 to $9.85. Retains neutral rating. Predicts improving global economy will support earnings, but notes significant risks remain.
Transurban Group	TCL	Macquarie lowers Transurban Group (TCL) price target from $14.49 to $14.33. Retains neutral rating. Notes that whilst COVID-19 movement restrictions and structural shift to working from home will likely have a small impact on earnings in the long run, remains concerned about bigger impact from lack of population growth.
Westpac Banking Corporation	WBC	Credit Suisse retains outperform rating on Westpac Banking Corporation (WBC). Retains $20.60 price target. Anticipates worst of writedowns are now behind the bank. Expects a dividend in half-year results of up to 50% of profits.
Westpac Banking Corporation	WBC	Macquarie retains outperform rating on Westpac Banking Corporation (WBC). Retains $18.00 price target. Cites weaker than expected capital position, but still sees a dividend when half-year results are announced. Asset disposals may provide further upside in share price.
Westpac Banking Corporation	WBC	Morgan Stanley retains equalweight rating on Westpac Banking Corporation (WBC). Retains $17.50 price target. Says writedowns announced were worse than expected by around $200m, but makes no change to either rating or price target as a result.
Westpac Banking Corporation	WBC	UBS retains buy rating on Westpac Banking Corporation (WBC). Retains $20.50 price target. Considers writedowns announced as in line with expectations. Sees potential for a $0.35 dividend when half-year results are released.
Westpac Banking Corporation	WBC	Jefferies lowers Westpac Banking Corporation (WBC) price target from $12.53 to $12.50.  Broker is not impressed with co's profit warning. Notes significant hit to capital reserves. Expects bank will likely undertake a capital raising to rectify.