Weekly Reports | 10:32 AM
Broker Rating Changes (Post Thursday Last Week)
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INTEGRAL DIAGNOSTICS LIMITED ((IDX)) Buy by Jarden.B/H/S: 0/0/0
Jarden reports Integral Diagnostics showed strong revenue growth in Q1, with Australian organic revenue up by 7.9%.
This outcome exceeds the brokers forecast of 6.5% for 1H25 but slightly trails Medicare benefits growth of 11.2% in Integral-weighted states.
New Zealand operations also performed well, with revenue growth of 10.2%, supported by specific contracts reintroducing indexation, explain the analysts.
The broker views the impending merger with Capitol Health ((CAJ)) favourably, noting potential synergies and benefits from the company's telehealth platform.
Jarden raises its 2025 EPS forecast by 8.8% and adjusts the target price to $3.72 from $3.67, anticipating the merger will be approved in December 2024. Buy.
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IONEER LIMITED ((INR)) Downgrade to Underweight from Overweight by Wilsons.B/H/S: 0/0/0
Underpinned by the recent long-awaited award of the final federal permit for the Rhyolite Ridge project, ioneer shares have roughly doubled since August. With attention now turning to the next phase, Wilsons believes newsflow is likely to turn negative in the near term.
Accordingly, the broker makes estimate changes which have driven a -33% cut in target price to 20c, and double-downgrades its
rating on the stock to Underweight from Overweight.
The key potential negatives upcoming are the updated project economics, for which Wilsons expects a significant increase in capex, and material risk to the potential financing arrangements which ioneer has in place to fund that capex.
JAMES HARDIE INDUSTRIES PLC ((JHX)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden has downgraded James Hardie Industries to an Overweight rating from Buy and lowered the target price to $52.00 from $54.00 due to heightened short-term earnings risks.
The analyst points to the US housing market outlook which has softened, with affordability concerns and interest rate volatility affecting buyer sentiment, especially in key regions like Texas and Florida.
Rising commodity costs, notably pulp and cement, are further pressuring the company's margins.
Jarden lowers FY25 net income forecast to the lower end of management's guidance range.
Despite short-term headwinds, Jarden remains positive on the company's long-term growth potential, citing a strong position in the US repair and remodel market and an under-levered balance sheet.
LYNAS RARE EARTHS LIMITED ((LYC)) Downgrade to Hold from Buy by Canaccord Genuity.B/H/S: 0/0/0
Lynas Rare Earths' September quarter results show NdPr/REO production of 1.67kt/3.6kt, respectively, which are aligned with forecasts, but sales lagged due to a weaker product mix, Canaccord Genuity highlights.
Revenue reached $128m, below consensus due to slower Kalgoorlie ramp-up and capex impacts from the Mt Weld expansion.
Despite a recent 20% increase in NdPr prices, Canaccord Genuity notes Lynas continues to match production to demand, moderating Kalgoorlie's ramp to complete the expansion by mid-2025.
Target price lifts to $7.50 from $7.40. The stock is downgraded to Hold from Buy on valuation grounds.
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