Weekly Reports | 10:30 AM
A summary of the highlights from Broker Call Extra updates throughout the week past
Broker Rating Changes (Post Thursday Last Week)
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ARB CORPORATION LIMITED ((ARB)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity upgrades to a Buy rating for ARB Corp with a $25.40 target price following a -22.3% decline in Top 11 index sales during August compared to the prior corresponding period.
The analyst notes the sales weakness, largely typified by the Ford Ranger, is driven by lengthening vehicle replacement timeframes amongst tradespeople amid high diesel prices and prospective tax structure changes.
Green shoots are emerging through improving Toyota supply constraints across HiLux, Prado, and LandCruiser models, which recently prompted Toyota Australia to lift 2026 sales guidance to 230,000 units.
While first-quarter Australian aftermarket sales are expected to remain soft, Canaccord Genuity projects overall FY27 outcomes will improve upon FY26.
This anticipated growth is supported by increased original equipment manufacturer sales, gross profit margin expansion, and a recovery in US exports as prior currency translation headwinds subside.
CENTURIA CAPITAL GROUP ((CNI)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades its rating for Centuria Capital to Buy from Hold with its target price decreased to $1.83 from $2.18 following a -44% share price decline since the June 2026 equity raise.
FY26 operating earnings per share increased 12% to 13.6c, supported by a rise in booked performance fees from $7m to $20m.
The analyst expects earnings growth to stall during the next two years due to higher interest rates, ongoing liquidity challenges for a major borrower within the Bass Credit division, and medium-term losses associated with the -$1bn capital cost rollout of the ResetData platform.
FY27 earnings guidance of 13.0c represents a -4% decline year-on-year, reflecting the dilutionary impact of the recent $300m equity raising.
Moelis views the current 9.3x forward price-to-earnings multiple as attractive on a risk-adjusted basis, valuing the funds management platform at approximately $540m compared to $1.6bn a year earlier.
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DYNO NOBEL LIMITED ((DNL)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Jarden downgrades Dyno Nobel to Neutral from Overweight with a $3.80 target price ahead of the company's 2026 Strategy Day in New York.
The upcoming presentation is expected to outline growth parameters for the explosives division beyond existing FY28 ambitions of $600m in underlying EBIT.
Jarden notes current consensus expectations remain below this target, making any potential extension of mid-term objectives to FY30 more illustrative than instructive.
Market focus will also centre on the existing FY26 explosives EBIT guidance range of $460m to $500m alongside capital deployment strategies.
Jarden estimates the business holds $730m to $800m in debt-funded capacity to pursue accretive acquisitions across Latin America or North America while remaining within target leverage parameters.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | ARB CORPORATION LIMITED | Buy | Neutral | Canaccord Genuity | |
| 2 | CENTURIA CAPITAL GROUP | Buy | Neutral | Moelis | |
| Downgrade | |||||
| 3 | DYNO NOBEL LIMITED | Neutral | Buy | Jarden | |
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