In Case You Missed It – BC Extra Upgrades & Downgrades – 16-05-25

Weekly Reports | 11:30 AM

Broker Rating Changes (Post Thursday Last Week)

There were no broker upgrades last week, only two downgrades.

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COMPUTERSHARE LIMITED ((CPU)) Downgrade to Sell from Neutral by Goldman Sachs.B/H/S: 0/0/0

Following a trading update, Goldman Sachs downgrades Computershare to Sell, citing an uncertain earnings outlook and valuation that screens as expensive relative to downside risks. The target falls to $37.50 from $38.94.

FY25 EPS guidance of 135cps was maintained, yet a downgrade to margin income (MI) and potential weakness in transaction-related revenue leave the broker cautious over earnings risks across FY26-27.

The analyst notes MI is potentially a significant headwind due to expected rate cuts, with earnings highly sensitive to yield trends despite partial hedging.

Economic uncertainty could also weigh on corporate action and employee share plan (ESP) revenues, highlights the broker, while the companys cost-out programs are tapering, limiting near-term margin expansion.

GOLD ROAD RESOURCES LIMITED ((GOR)) Downgrade to Hold from Buy by Canaccord Genuity.B/H/S: 0/0/0

Canaccord Genuity notes Gold Road Resources has entered into a scheme implementation deed with Gold Fields, which will acquire 100% of the company for $3.40/share.

The deal consists of $2.52/share fixed, and variable linked to Gold Road's stake in Northern Star Resources ((NXT)) valued at 88c as of May 2.

The broker views the deal as a good outcome as it is a 12% increase from Gold Fields' initial offer and a 27% premium to the stock's record high in early March.

Rating downgraded to Hold from Buy. Target cut to $3.40 from $3.45.