A selection of ratings upgrades and downgrades, target price changes, and commentary for ASX stocks from major research houses.
A quiet day for broker upgrades/downgrades. Collins Foods (CKF) is in the spotlight after it provided a trading update Tuesday, and Macquarie has resumed its coverage of Qantas (QAN) with an upgrade to Buy and a 21% increase in QAN's target price following QAN's major announcement last week.
| Collins Foods Limited |
CKF |
Morgans retains add rating on Collins Foods Limited (CKF). Raises price target from $8.17 to $10.23. Broker is approving of strategy to focus on higher returning Australian KFC stores. |
| Collins Foods Limited |
CKF |
UBS retains buy rating on Collins Foods Limited (CKF). Raises price target from $8.95 to $10.65. Describes second half performance as impressive on ability to capitalise on delivery offering during covid-19 shutdowns. |
| Charter Hall Retail Reit |
CQR |
Credit Suisse raises Charter Hall Retail Reit (CQR) price target from $3.32 to $3.41. Retains outperform rating. |
| Idp Education Limited |
IEL |
UBS raises Idp Education Limited (IEL) price target from $13.95 to $18.20. Retains buy rating. Sees increasing demand for company's products in developed countries. |
| Qantas Airways Limited |
QAN |
Macquarie upgrades Qantas Airways Limited (QAN) rating from neutral to outperform. Raises price target from $3.60 to $4.35. Says pathway to recovery will be challenging, but Qantas likely to be leaner and meaner on the other side of covid-19 disruptions. Forecasts a return to profitability in FY22. |
| Ramelius Resources Limited |
RMS |
Morgans retains add rating on Ramelius Resources Limited (RMS). Raises price target from $1.93 to $2.31. Cites management's ability to maintain margins, control costs. |
| Stockland |
SGP |
Credit Suisse retains outperform rating on Stockland (SGP). Retains $3.56 price target. Notes covid-19 likely to cause company to reduce pay out ratio to 70-75% for FY21 as company moves to retain a greater proportion of earnings. |
| Westpac Banking Corporation |
WBC |
Goldman Sachs upgrades Westpac Banking Corporation (WBC) rating from neutral to buy. |
| Whitehaven Coal Limited |
WHC |
Citi upgrades Whitehaven Coal Limited (WHC) rating from neutral to buy. Lowers price target from $1.80 to $1.75. Predicts drop in FY20 and FY21 earnings due to hit to metallurgical coal sales due to low coal prices caused by weak demand. |