Weekly Reports | Jul 04 2025
Broker Rating Changes (Post Thursday Last Week)
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BREVILLE GROUP LIMITED ((BRG)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades Breville Group to Overweight from Neutral while lowering the target price to $31 from $32.10, as the reaction to tariffs on the stock appears to have been too extensive.
The analyst has assumed circa 55% tariff rate on products from China to the US, and FY26 EPS estimate declines by -12%, with FY27/FY28 down by -6% and -7%, respectively.
Cost of goods sold is expected to be a headwind in FY26, offset by some lower costs as product manufacturing is relocated to other lower tariff geographies.
As Breville's competitors are experiencing the same tariff issues, Jarden believes the impacts are "broad-based" and will be transitory.
The analyst continues to view the longer-term growth prospects as positive for the premium brand, with Asia and China the largest opportunity.
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OBJECTIVE CORPORATION LIMITED ((OCL)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Moelis highlights Objective Corp's software products help resolve housing development bottlenecks by boosting efficiency of planning and approval processes.
The company made progress recently with the acquisition of NZ-based Isovist which the broker reckons will add a further NZ$2.2m to annual recurring revenue.
The company also announced the launch of Objective Build in Australia, noting it has been adopted by over 50% of councils in NZ.
The Objective Build debut in Australia is expected to unlock a market four times the size of New Zealand.
Target price lifted to $20.19 from $17.71. Rating downgraded to Hold from Buy.
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