In Case You Missed It – BC Extra Upgrades & Downgrades – 09-02-24

Weekly Reports | Feb 09 2024

Broker Rating Changes (Post Thursday Last Week)


29METALS LIMITED ((29M)) Upgrade to Hold from Sell by Canaccord Genuity.B/H/S: 0/0/0

29Metals' December quarter result missed consensus forecasts on a number of items, including production of 5,200 ounces at Golden Grove and 2,400 at Capricorn Copper.

Canaccord Genuity notes C1 cash costs declined -7% quarter-on-quarter to US$3.06 per pound. All-in sustaining costs declined -11% quarter-on-quarter to US$3.71 per pound, but remained higher than the broker's estimated US$1.57 per pound.

The rating is upgraded to Hold from Sell and the target price decreases to 41 cents from 59 cents.

AUCKLAND INTERNATIONAL AIRPORT LIMITED ((AIA)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0

Jarden assesses a weaker than expected guidance update from Air New Zealand (AIR) on the potential passenger volumes for Auckland International Airport.

International volumes are below guidance and load factors remain under 2019 levels. The analyst expects FY24 international passengers of 10.1m against 10.6m guidance. Forecast domestic volumes of 8.45m are also slightly softer than 8.5m guidance.

The broker highlights potential downside risks to Auckland Airport's earnings in FY24 with net profit guidance at $260m-$280m and the Jarden forecast at the lower end of the range.

Jarden lifts the target price to $8.26 from $7.71 based on lower risk-free rates and has a Neutral rating. 

SANDFIRE RESOURCES LIMITED ((SFR)) Buy by Canaccord Genuity.B/H/S: 0/0/0

Canaccord Genuity notes a further ramp-up of Motheo helped secure a 50% rise in copper production and zinc production lifted 31% in Sandfire Resources' December quarter, compared to the previous quarter.

The broker continues to be impressed by the Motheo ramp-up with the average annualised run rate at 3.5Mtpa, compared to 3.1Mtpa for the September quarter.

The Buy rating is unchanged but the target price is lifted to $7.75 from $7.50.

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