Weekly Reports | 10:30 AM
Broker Rating Changes (Post Thursday Last Week)
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AUDINATE GROUP LIMITED ((AD8)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis notes Audinate Group had strong revenue momentum until 2H24, except for a brief interruption during covid, but sales have slowed down sharply in the past 12 months.
Inventory overhang by key clients and US tariffs are adding to the company's uncertain outlook, and two of its Asia-listed partners echoed similar concerns. The broker cut the FY26 revenue forecast down by -5%.
Rating upgraded to Buy from Hold. Target cut to $9.86 from $10.27.
KELSIAN GROUP LIMITED ((KLS)) Upgrade to Outperform by Taylor Collison.B/H/S: 0/0/0
Taylor Collison views recent developments as helping to de-risk Kelsian Group's FY27 earnings outlook, underpinned by contract momentum and asset sales.
Positive signals include a CP2 contract agreement with Worley ((WOR)), commencement of civil works in FY26, and progress toward extending the key Sydney R6 contract past its June 2026 expiry.
The CP2 contract involves providing comprehensive workforce transportation services for the construction and development phase of the Venture Global LNG CP2 project in Cameron Parish, Louisiana.
The broker highlights a potential $150-$170m capital recycle from tourism asset divestments, potentially reducing net debt/earnings to 2.22.3 times by FY26 on a proforma basis.
Taylor Collison upgrades to an Outperform rating. The broker's blended fair valuation is $4.11.
VULCAN STEEL LIMITED ((VSL)) Upgrade to Buy from Neutral by Jarden.B/H/S: 0/0/0
Jarden notes a modest recovery in 2H25 expected by Vulcan Steel following a tough 1H25 has failed to materialise so far. The company is still waiting for a rebound that was flagged three months earlier.
The broker cut FY25 EBITDA forecast to NZ$107m from NZ$110m and pushed back expectations for a return to mid-cycle earnings in 2027 from 2H2026.
No impact from the CEO transition announcement.
Target cut to NZ$7.55 from $8.00. Rating upgraded to Buy from Neutral, with the broker noting the current share price provides a good entry point trading on a FY27 EV/EBITDA multiple of 7.1x.
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