Weekly Reports | 10:30 AM
Broker Rating Changes (Post Thursday Last Week)
Downgrade
ARISTOCRAT LEISURE LIMITED ((ALL)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Jarden revises its view on Aristocrat Leisure following a share price recovery post a weaker-than-expected interim result, marked by a drop in Gaming Ops Fee Per Day.
The broker believes the recent Monopoly licence acquisition is a tactical move in response to increased competition and efforts to sustain market-leading installations above historical averages.
While the analysts remain constructive on the gaming supplier sector and Aristocrat's long-term prospects, they highlight concerns around incremental returns from recent investments, particularly in the nascent Interactive business.
The broker cautions on the financial justification of recent high-profile licence acquisitions but acknowledges management's ability to leverage a strong balance sheet.
Jarden downgrades to a Neutral rating from Overweight on a risk/reward basis and retains a $64.00 target price.
BANK OF QUEENSLAND LIMITED ((BOQ)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden downgraded Bank of Queensland to Underweight from Neutral due to valuation reasons. This follows a 13% rally in the stock price since the 1H25 result on April 16.
No change to forecasts or target price of $6.70.
G8 EDUCATION LIMITED ((GEM)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Moelis notes occupancy improvements were already looking challenging for G8 Education for the rest of 2025, and an additional headwind has emerged with the incident at its Creative Garden Point Cook childcare centre.
The broker believes there is high uncertainty about the potential impact of the incident in terms of occupancy and regulatory risks across the sector.
The analyst downgraded FY25/26/27 EPS forecasts by -3.5%/-4.7%/-5.6%, respectively.
Rating downgraded to Hold from Buy. Target cut to $1.15 from $1.49.
HUB24 LIMITED ((HUB)) Downgrade to Market Weight from Overweight by Wilsons and Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
Wilsons revised 4Q25 forecasts for Hub24 to reflect the sharp reversal in the markets since the last update in April.
The broker now expects custodial funds under administration to end FY25 at $112.2bn from $107.3bn previous estimate. EPS forecast for FY25 lifted by 1% and by 4% for FY26.
Target price rises to $90.62 from $71.50 on EPS revisions and valuation roll-forward. Rating downgraded to Market Weight from Overweight on valuation.
Jarden marked-to-market investment movements for insurance and wealth stocks for the June quarter, noting a fall in risk-free rates, a strong rebound in global equities, USD depreciation and credit spread compression.
The sharp recovery in equity markets drove upgrades to FUA/FUM for wealth and diversified financials stocks.
EPS forecast for Hub24 lifted by 2.6% for FY25 and by 13.6% for FY26.
Target rises to $79.50 from $63.00. Rating downgraded to Underweight from Neutral.
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE