Weekly Reports | Mar 01 2024
Broker Rating Changes (Post Thursday Last Week)
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BRAVURA SOLUTIONS LIMITED ((BVS)) Upgrade to Overweight from Market Weight by Wilsons.B/H/S: 0/0/0
New leadership at Bravura Solutions has delivered a more upbeat result for the 1H24 according to Wilsons.
Revenue growth beat the broker's forecast by 3% with a 7% rise. Wealth Management and Funds Administration achieved 8% and 5% revenue growth respectively.
Some $40m of cost out savings in FY24 are expected, as the business is "re-set", including a -20% decline in the employee count.
Management reconfirmed FY24 revenue guidance of circa $249m, in line with FY23 and Wilsons increases EPS forecasts for FY24 and FY25.
The stock is upgraded to Overweight from Market Weight with an accompanying lift in the target price to $1.51 from $0.69.
CAR GROUP LIMITED ((CAR)) Upgrade to Buy from Neutral by Goldman Sachs.B/H/S: 0/0/0
After reviewing 1H results for the classifieds market segment on the ASX, Goldman Sachs notes management at CAR Group and REA Group are accelerating growth investment.
The broker points out these two companies have the strongest 2024 revenue outlook, by contrast to Domain Holdings Australia and Seek where opex guidance is unchanged and lowered, respectively.
CAR Group grew market share in the 1H and the analysts are increasingly confident in earnings momentum both domestically and globally.
Goldmans rating is upgraded to Buy from Neutral and the target increased by 19% to $39.40.
RELIANCE WORLDWIDE CORP. LIMITED ((RWC)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
A better than expected first half result from Reliance Worldwide, with adjusted earnings a 3% beat to market forecasts.
Guidance was broadly retained, but Jarden points out risk balance has shifted from downside in European operations to upside in US operations. Some risk remains in Europe, but the broker found the manufacturing shift and improved cash flows encouraging.
The company also improved its leverage to both the US and Australian markets, successfully transferring its manufacturing footprint to the US. The broker considers Reliance Worldwide better placed to handle near-term uncertainty.
The rating is upgraded to Overweight from Neutral and the target price increases to $5.30 from $4.10.
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