Weekly Reports | Nov 29 2024
Broker Rating Changes (Post Thursday Last Week)
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EMECO HOLDINGS LIMITED ((EHL)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades Emeco Holdings to Overweight from Neutral following an AGM update where initial FY25 earnings (EBITDA) guidance of at least $300m was provided.
Management indicated a similar earnings skew to FY24 in FY25, with a slight improvement anticipated in 2H25 utilisation.
The broker raises EPS estimates for FY25-27 by 17%, 7%, and 7%, respectively, supported by strong demand for surface equipment and constrained capital intensity.
Jarden increases the target price to $1.00 from $0.85, citing enhanced earnings visibility and balance sheet strength.
HARVEY NORMAN HOLDINGS LIMITED ((HVN)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden has recalibrated its views on retailers.
The broker upgrades Harvey Norman to Overweight from Neutral to reflect the replacement cycle, a more optimistic outlook for the consumer in 2025 with short-term volatility and a lot relying on Cyber week.
Target price moves to $4.90 with the company's upcoming AGM on Nov 27.
JB HI-FI LIMITED ((JBH)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
Jarden has recalibrated its views on retailers.
The broker upgrades JB Hi-Fi to Neutral from Underweight, reflecting the replacement cycle and a more optimistic outlook for consumers in 2025, despite short-term volatility and the significance of the upcoming Cyber Week.
Jarden believes JB Hi-Fi offers "quality growth" and raises the target price to $84 from $68.
LOVISA HOLDINGS LIMITED ((LOV)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Following a trading update for the first 20 weeks of FY25, Jarden lowers its forecasts for Lovisa Holdings to reflect a more conservative store rollout.
The target price falls to $29.03 from $30.59, and the broker upgrades the rating to Overweight from Neutral, noting execution risk is now largely priced into the current share price. A strong long-term rollout opportunity is still considered viable.
Net new store rollouts totaled 27, with closures reduced to 13, consistent with FY23 levels.
The trading update showed like-for-like sales growth slowed to 1.0% year-on-year, below the 2.5% consensus, while total sales growth of 10% lagged the 13.2% forecast, note the analysts.
SUPER RETAIL GROUP LIMITED ((SUL)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden has recalibrated its views on retailers.
The broker upgrades Super Retail to Overweight from Neutral with a $16.80 target price.
Jarden has a more optimistic view on the consumer for 2025 with Super Retail expected to gain market share.
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