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ASX Broker Moves: Recent Changes in Ratings and Target Prices
Welcome to the latest edition of ASX Broker Moves, your go-to resource for understanding recent updates in broker ratings and target prices within the Australian stock market.
Recent Updates
The following tables showcase the latest upgrades, downgrades, and target price amendments by leading brokers over the past five trading days. For in-depth daily updates, refer to our Evening Wrap.
Broker Highlights
Jarden on Core Lithium (ASX: CXO): Upgraded to Neutral
- Rationale: Core Lithium’s restart study includes a Pre-Feasibility Study (PFS) for existing reserves, with updates indicating lower operating costs offsetting reduced long-term lithium price forecasts.
- Target Price: Increased to $0.10 from $0.07 (+6.4% upside).
UBS on Goodman Group (ASX: GMG): Upgraded to Buy
- Rationale: Increased confidence in data centre funding and moderate market expectations, along with forecasted medium-term operating earnings growth of ~10%.
- Target Price: Adjusted slightly down to $36.00 from $36.80 (+16.4% upside).
Citi on Macquarie Group (ASX: MQG): Upgraded to Neutral
- Rationale: Adjustments to MAM and CGM guidance with manageable downside risks, supporting a Neutral rating despite overall economic visibility remaining low.
- Target Price: Raised to $200 from $177 (-6.6% downside).
UBS on Coronado Global Resources (ASX: CRN): Downgraded to Neutral
- Rationale: While productivity improvements are expected, margin pressures necessitate a longer timeline for growth and significant funding requirements.
- Target Price: Reduced to $0.19 from $0.31 (no change in upside).
Macquarie on Treasury Wine Estates (ASX: TWE): Downgraded to Neutral
- Rationale: New CEO appointment seen positively; however, the strategy’s outcomes are uncertain until he takes office.
- Target Price: Decreased to $8.90 from $11.70 (+2.9% upside).
Jefferies on Xero (ASX: XRO): Downgraded to Hold
- Rationale: Post share price increase, the valuation looks less appealing, and growth may hinder profitability due to weaker local subscriber numbers.
- Target Price: Increased to $194.80 from $185 (+7% upside).
Rating Changes Overview
Upgrades
| Company | Broker | New Rating | Old Rating | Target Price | TP Upside % |
|---|---|---|---|---|---|
| ANZ Group | E&P | Neutral | Negative | $30.00 | 3.4% |
| Bluescope Steel | Ord Minnett | Buy | Accumulate | $29.00 | 22.0% |
| Core Lithium | Jarden | Neutral | Sell | $0.10 | 6.4% |
| Goodman Group | UBS | Buy | Neutral | $36.00 | 16.4% |
Downgrades
| Company | Broker | New Rating | Old Rating | Target Price | TP Upside % |
|---|---|---|---|---|---|
| Alcoa Corporation (AAI) | UBS | Neutral | Buy | US$31.00 | n/a |
| Eagers Automotive (APE) | Jefferies | Underperform | Hold | $15.50 | -11.6% |
| Coronado Global Resources (CRN) | UBS | Neutral | Buy | $0.19 | 0.0% |
Initiated Ratings
| Company | Broker | New Rating | Target Price | TP Upside % |
|---|---|---|---|---|
| Astral Resources (AAR) | Taylor Collison | Buy | $0.35 | 141.4% |
| Macmahon (MAH) | Bell Potter | Buy | $0.40 | 45.5% |
| Treasury Wine Estates (TWE) | RBC Capital Markets | Outperform | $11.00 | 27.2% |
Largest Target Price Changes
| Company | Broker | Rating | New TP | Old TP | TP Change % | TP Upside % |
|---|---|---|---|---|---|---|
| Core Lithium (CXO) | Jarden | Neutral | $0.10 | $0.07 | 42.9% | +6.4% |
| Boss Energy (BOE) | Ord Minnett | Buy | $6.00 | $4.50 | 33.3% | +49.6% |
| Reliance Worldwide Corp. (RWC) | Morgans | Add | $5.45 | $4.00 | 36.3% | +17.0% |
Understanding Broker Recommendations
Typically, broker recommendations consist of two main components:
- Rating: A directive for investors, which may vary from buy, hold, or sell, to more specific nuances like accumulate or add.
- Target Price (TP): The expected price at which the stock is projected to trade in the future, usually within a 12-month timeline.
Stay updated with these ongoing changes and consider the influences they may have on your investment decisions.
