Weekly Reports | 10:30 AM
A summary of the highlights from Broker Call Extra updates throughout the week past.
Broker Rating Changes (Post Thursday Last Week)
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ORORA LIMITED ((ORA)) Upgrade to Buy from Overweight by Jarden.B/H/S: 0/0/0
Jarden notes Orora's FY25 result showed the Saverglass unit has stabilised, beating consensus, with the overall result broadly in line.
FY26 outlook surprised to the upside, with Australasia Cans EBIT in line with consensus, Gawler slightly lower but Saverglass better than expected.
The broker reckons lower capex is a big positive for cash flow, and while consensus may need to temper FY26 NPAT expectations, the stabilisation at Saverglass and cash generation should underpin confidence.
Target rises to $2.60 from $2.35 on DCF assumption revisions, lower capex and roll-forward. Rating upgraded to Buy from Overweight.
ORIGIN ENERGY LIMITED ((ORG)) Neutral by Jarden.B/H/S: 0/0/0
Jarden assessed Origin Energy's FY25 result to be broadly in line and therefore thinks the strong share price reaction was a bit overdone.
Underlying EBITDA was in line with the broker's forecast and the consensus, though underlying net profit was 4% ahead of the broker's forecast and 1% ahead of the consensus.
FY26 EBITDA guidance for energy markets was $1.4-1.7bn which was $300m higher than initial guidance for FY25, but -3% below the broker's estimate. APLNG guidance was unchanged vs July update, and Octopus' performance was below the broker's forecast.
The broker lifted FY26 EPS forecast by 6.5% and FY27 by 7.4% on higher energy market EBITDA and lower forecast depreciation.
Neutral. Target price $11.70.
PRO MEDICUS LIMITED ((PME)) Upgrade to Overweight from Market Weight by Wilsons.B/H/S: 0/0/0
Wilsons notes Pro Medicus's FY25 result was solid on revenue and outstanding on margin leverage, showing it can lift profits while penetrating larger US integrated delivery networks.
Total addressable market for cardiology was lifted to 670m scans, of which 85% is serviceable in full-stack model. Digital pathology was confirmed for FY26 and the broker views it as offering future upside optionality.
Minimal changes to the broker's revenue forecasts but margin is conservatively expected to increase by 60bps in FY26 and 76bps in FY27.
Target lifted to $350 from $325. Rating upgraded to Overweight from Market Weight.
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