In Case You Missed It – BC Extra Upgrades & Downgrades – 19-06-26

Array
(
    [0] => Array
        (
            [0] => ((A2M))
            [1] => ((SXE))
            [2] => ((TCL))
        )

    [1] => Array
        (
            [0] => A2M
            [1] => SXE
            [2] => TCL
        )

)

This story features A2 MILK COMPANY LIMITED, and other companies.
For more info SHARE ANALYSIS: A2M
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

A summary of the highlights from Broker Call Extra updates throughout the week past.

Broker Rating Changes (Post Thursday Last Week)

Upgrade

A2 MILK COMPANY LIMITED ((A2M)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0

Jarden upgrades a2 Milk Co to Neutral from Underweight and reduces the target to NZ$7.36 from NZ$9.20 to include recent changes from the Ministry of Primary Industries as it relates to infant formula cereulide toxin testing.

The broker takes some comfort, as time has passed, that there are no further issues that need to be notified to the market.

Its desktop channel checks also confirm stock shortages in China Label across many online storefronts, which aligns with supply constraints foreshadowed in the trading update in mid April.

Jarden acknowledges there remain many unanswered questions regarding the investment case, but also finds the reduced cereulide tail risk is now better reflected in the share price de-rating.

On June 15th the broker followed up as follows:

Jarden maintains a Neutral rating for a2 Milk Co with a NZ$7.36 target price following channel checks indicating an emerging restock cycle for its China Label infant milk formula range.

Desktop analysis of popular Taobao storefronts and localised social media monitoring confirm the gradual re-entry of product supply across Mother and Baby Store and general trade channels.

New product batches manufactured after February 2026 feature an additional traceability QR code sticker, allowing consumers to directly verify customs clearance and negative cereulide testing results.

The analyst notes the stabilisation of product availability reduces severe tail risks associated with product recalls or structural supply chain disruptions.

A -20% discount remains embedded within the 12-month discounted cash flow valuation to account for residual uncertainty ahead of opening guidance for FY27 in August.

Downgrade

SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED ((SXE)) Downgrade to Hold from Buy by Shaw and Partners.B/H/S: 0/0/0

Shaw and Partners moves its rating to Hold from Buy for Southern Cross Electrical Engineering with its target price increased to $4.70.

The structural adjustments follow a strong trading update for FY27, guiding EBITDA to at least $100m which implies a 33% year-on-year growth trajectory.

Capital restructuring includes a successful institutional placement of $150m in equity at $4.00 per share and a planned $15m share purchase plan to fund expanding project working capital and strategic acquisitions.

The analyst notes strong second-half performance momentum in FY26 and a robust awards pipeline across data centers, infrastructure, and renewable energy segments underpin intermediate expansion.

While industrial tailwinds remain constructive, a high forward price-to-earnings multiple requires careful risk tracking given that lumpy non-recurring streams represent approximately 80% of group revenue, the report points out.

TRANSURBAN GROUP LIMITED ((TCL)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0

Jarden downgrades Transurban Group to Underweight from Neutral as the stock is now trading at a forecast 4.7% FY27 yield, below the Australian government 10-year bond yield at 4.90%.

The broker also highlights the risks to the fourth quarter traffic outlook as a result of geopolitical and macroeconomic uncertainty although acknowledges the update on April volumes was better than expected.

FY26 free cash flow estimates are marginally increased, reflecting FX effects and higher toll prices in the US, which drives a slight increase to the target, to $13.10 from $12.90.

Price Target Changes (Post Thursday Last Week)

More Highlights

AUE    AURUM RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.56 

Canaccord Genuity rates ((AUE)) as Buy (1) –

Canaccord Genuity maintains a Speculative Buy rating on Aurum Resources and increases its target price to $1.80 from $1.55 following the release of a Pre-Feasibility Study for the Boundiali Gold Project in Cote d’Ivoire.

The study outlines an 11-year open-pit operation producing approximately 1.5Moz of gold through a 6Mtpa processing plant, with average annual production of 139koz and nearly 1Moz scheduled during the first five years.

The broker comments the study suggests strong early cash generation and a rapid capital payback.

A maiden Ore Reserve of 42.1Mt at 0.9g/t gold underpins the development plan, while broader mine inventory totals 66.2Mt at 0.82g/t gold for 1.7Moz including Inferred resources, providing scope for future mine-life extensions.

Updated valuation assumptions incorporate 10% higher capital expenditure, 15% higher operating costs and a 60% risking factor. The broker continues to see exploration and resource growth potential across the broader mineralised system.

Canaccord Genuity’s valuation is based on a funded development scenario and reflects a preliminary assessment given the current Pre-Feasibility Study level of project definition.

This report was published on June 13, 2026.

Target price is $1.80 Current Price is $0.56 Difference: $1.245
If AUE meets the Canaccord Genuity target it will return approximately 224% (excluding dividends, fees and charges).

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

DGL    DGL GROUP LIMITED

Commercial Services & Supplies – Overnight Price: $0.33 

Jarden rates ((DGL)) as Initiation of coverage with Buy (1) –

Jarden maintains a Buy rating for DGL Group with its target price increased to NZ$6.80 following a strong upward revision to the company’s financial year profit guidance.

Operating earnings projections lifted 15% at the mid-point to a new range of NZ$61m to NZ$63m, driven by robust fourth-quarter North American case sales alongside lower effective tariff rates and favorable currency movements.

Recent global inventory destocking protocols have restored channel visibility, bringing product shipments and customer depletions back into a sustainable equilibrium.

The analyst notes 2026 vintage harvest volumes decreased -19% year-on-year to manage down historical oversupply imbalances and support forward pricing behavior.

The report concludes restored trading momentum combined with decade-low valuation multiples provides a credible structural framework for a sustained medium-term corporate earnings recovery.

This report was published on June 16, 2026.

Current Price is $0.33. Target price not assessed.
The company’s fiscal year ends in June.

Forecast for FY26:

Jarden forecasts a full year FY26 dividend of 21.00 cents and EPS of 60.00 cents.
At the last closing share price the estimated dividend yield is 63.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 0.55.

Forecast for FY27:

Jarden forecasts a full year FY27 dividend of 21.00 cents and EPS of 56.50 cents.
At the last closing share price the estimated dividend yield is 63.64%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 0.58.

All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

GHM    GOLDEN HORSE MINERALS LIMITED

Gold & Silver – Overnight Price: $0.42 

Canaccord Genuity rates ((GHM)) as Buy (1) –

Canaccord Genuity maintains a Speculative Buy rating for Golden Horse Minerals with a $1.50 target price following encouraging regional exploration results across its Southern Cross tenure.

Reverse circulation drilling at the Hakes Find prospect delineated shallow, high-grade gold mineralization over a 500m strike length, including an intercept of 11m grading 3.37g/t gold from a depth of 33m.

The regional program also uncovered localized silver mineralization grading up to 62g/t silver, indicating a polymetallic signature within the structurally controlled orogenic system.

Deep diamond drilling at the flagship Hopes Hill prospect successfully extended known mineralized footprints, returning a high-grade hit of 7.05m grading 7.04g/t gold from a depth of 252m.

The analyst suggests the company has been excessively impacted by a challenging gold equity environment despite consistent exploration de-risking and ongoing efforts toward a maiden resource estimation.

This report was published on June 11, 2026.

Target price is $1.50 Current Price is $0.42 Difference: $1.075
If GHM meets the Canaccord Genuity target it will return approximately 253% (excluding dividends, fees and charges).

All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

Shaw and Partners rates ((GHM)) as Buy (1) –

Shaw and Partners maintains a Buy rating for Golden Horse Minerals with a $1.50 target price following regional drilling updates across its core gold tenure.

Regional reverse circulation drilling at Hakes Find confirmed shallow mineralisation over a strike length exceeding 500m, delivering intercepts up to 11m at 3.37g/t gold.

Deep exploration at the flagship Hopes Hill project continues to return high-grade diamond intercepts including 7.05m at 7.04g/t gold to infill the subsurface geological model.

Ongoing campaigns across emerging regional targets like Greenmount build out an extensive discovery pipeline ahead of a planned maiden mineral resource estimate by the end of 2026.

The analysts view the ambitious multi-rig exploration program as highly positive for expanding the asset base throughout the Southern Cross Greenstone Belt.

This report was published on June 11, 2026.

Target price is $1.50 Current Price is $0.42 Difference: $1.075
If GHM meets the Shaw and Partners target it will return approximately 253% (excluding dividends, fees and charges).

All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

PNC    PIONEER CREDIT LIMITED

Business & Consumer Credit – Overnight Price: $0.70 

Shaw and Partners rates ((PNC)) as Buy (1) –

Shaw and Partners maintains a Buy rating for Pioneer Credit with a $1.00 target price following a post-Federal Budget analysis of alternative financial sector profit levers.

Softer housing conditions and slowing credit growth are projected to pressure bank earnings through rising asset impairments.

The analyst expects this macro environment to trigger an inevitable supply surge of written-off, aged debt portfolios available for regional monetization.

Pioneer Credit reiterated its formal FY26 guidance metrics, targeting statutory net profit after tax exceeding $23m on ledger asset purchases of at least $80m.

Commentary suggests tight compliance records preserve a defensive competitive duopoly, supporting continued expansion of core cash collections into FY27.

This report was published on June 12, 2026.

Target price is $1.00 Current Price is $0.70 Difference: $0.3
If PNC meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).
The company’s fiscal year ends in June.

Forecast for FY26:

Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 12.30 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.69.

Forecast for FY27:

Shaw and Partners forecasts a full year FY27 dividend of 0.00 cents and EPS of 14.00 cents.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 5.00.

All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SYL    SYMAL GROUP LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.92 

Canaccord Genuity rates ((SYL)) as Buy (1) –

Symal Group’s acquisition of Queensland-based Shamrock Civil strengthens its presence outside Victoria.

Canaccord Genuity explains the deal adds defence capabilities, gas infrastructure expertise and greater exposure to Queensland’s infrastructure pipeline.

In addition, the transaction positions the company to benefit from more than $100bn of forecast Queensland infrastructure investment through to 2030, including Brisbane Olympics-related projects, the analysts note.

Opportunities across defence infrastructure and gas development in the Surat Basin, are also highlighted, where Shamrock has established relationships with major customers.

Canaccord lifts its FY27 and FY28 revenue forecasts by 13% and 17%, respectively, and raises its earnings (EBITDA) forecasts by 9% and 12%.

The broker retains a Buy rating and raises its target to $3.70 from $3.50.

This report was published on June 18, 2026.

Target price is $3.70 Current Price is $2.92 Difference: $0.78
If SYL meets the Canaccord Genuity target it will return approximately 27% (excluding dividends, fees and charges).

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

SXE    SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

Mining Sector Contracting – Overnight Price: $4.82 

Moelis rates ((SXE)) as Buy (1) –

Moelis retains a Buy rating for Southern Cross Electrical Engineering with its target price increased to $4.70, following a strong trading update.

Management provided maiden FY27 EBITDA guidance of at least $100m —a material step-up on prior consensus of $80m— alongside an upgrade to FY26 EBITDA guidance to at least $75m.

New work awards totalling $150m include the NextDC ((NXT)) S4 data centre, a switchboard order for a major data centre, and Rio Tinto’s ((RIO)) Pilbara MCA, underpinning visible FY27 earnings inflection as data centre wins translate into a material earnings step change.

The analyst revises FY26-FY28 EPS estimates by -2.3%/17.6%/16.9% to 15.3c/19.5c/20.1c respectively, with DPS held steady at 8.0c across FY26-FY28.

Management noted the current tender pipeline exceeds $1bn and FY27 data centre revenue is expected to be approximately three times FY26 levels of $120m.

The investment thesis centred on strong structural tailwinds in electrification and decarbonisation translating into data centre and infrastructure spend.

This report was published on June 16, 2026.

Target price is $4.70 Current Price is $4.82 Difference: minus $0.12 (current price is over target).
If SXE meets the Moelis target it will return approximately minus 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company’s fiscal year ends in June.

Forecast for FY26:

Moelis forecasts a full year FY26 dividend of 8.00 cents and EPS of 15.30 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 31.50.

Forecast for FY27:

Moelis forecasts a full year FY27 dividend of 8.00 cents and EPS of 19.50 cents.
At the last closing share price the estimated dividend yield is 1.66%.
At the last closing share price the stock’s estimated Price to Earnings Ratio (PER) is 24.72.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

YRL    YANDAL RESOURCES LIMITED

Gold & Silver – Overnight Price: $0.19 

Shaw and Partners rates ((YRL)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates coverage on Yandal Resources with a Buy rating and a $0.51 target price based on an in-ground asset valuation framework.

The explorer holds a baseline resource of 450koz of gold across granted Western Australian mining leases, demonstrating clear extension potential into deeper fresh rock, the broker concludes.

Near-term exploration activity accelerates following the establishment of a dedicated 21-person operations camp, fully funded through a cash reserve of $14.7m.

The analysts believe the deposits carry high corporate appeal for underutilized nearby mills, offering strategic infrastructure sharing or toll-treatment partnership opportunities.

The core thesis models resource expansion toward 1m ounces within twelve months to lift the valuation baseline toward peer group explorer averages.

This report was published on June 11, 2026.

Target price is $0.51 Current Price is $0.19 Difference: $0.32
If YRL meets the Shaw and Partners target it will return approximately 168% (excluding dividends, fees and charges).

All consensus data are updated until yesterday. FNArena’s consensus calculations require a minimum of three sources

Click to view our Glossary of Financial Terms