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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ILUKA RESOURCES LIMITED ((ILU)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity retains a constructive outlook on rare earth equities, citing China’s 12-month pause on rare earth export controls as positive for supply certainty and magnet demand. Global dependence on China remains unresolved, note the analysts.
Prices and sentiment have improved, highlights the broker, yet export restrictions persist for strategic uses, with new non-Chinese supply unlikely before 2028.
It's believed China will still hold around 75% of NdPr refining and 85% of magnet capacity by then, maintaining market dominance.
Canaccord lifts its NdPr price forecasts by an average 16% for 2026-30, with the long-term at US$130/kg, and raises Dy and Tb oxide price estimates by 10-50%.
For Iluka Resources, the target rises to $7.30 from $7.10 and the broker's rating is upgraded to Buy from Hold.
LYNAS RARE EARTHS LIMITED ((LYC)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity retains a constructive outlook on rare earth equities, citing China’s 12-month pause on rare earth export controls as positive for supply certainty and magnet demand. Global dependence on China remains unresolved, note the analysts.
Prices and sentiment have improved, highlights the broker, yet export restrictions persist for strategic uses, with new non-Chinese supply unlikely before 2028.
It's believed China will still hold around 75% of NdPr refining and 85% of magnet capacity by then, maintaining market dominance.
Canaccord lifts its NdPr price forecasts by an average 16% for 2026-30, with the long-term at US$130/kg, and raises Dy and Tb oxide price estimates by 10-50%.
The broker raises its target for Lynas Rare Earths to $15.55 from $14.15 and upgrades to Buy from Hold.
MACQUARIE GROUP LIMITED ((MQG)) Upgrade to Overweight from Underweight by Jarden.B/H/S: 0/0/0
After reviewing 1H results, Jarden believes Macquarie Group is entering a transition phase, with recent divestments providing improved earnings visibility.
The broker highlights the agreed sale of Macquarie Asset Management's (MAM’s) stake in Aligned Data Centers, which secures around three years of performance fees.
MAM has stabilised, according to the analysts, with proceeds from selling its US and European public investments business to Nomura to be redeployed into private markets. A solid capital markets pipeline is believed to support Macquarie Capital (MacCap).
Jarden lifts its FY26-28 cash earnings by up to 5%, upgrading to Overweight from Underweight with an unchanged $200 target.
REA GROUP LIMITED ((REA)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
REA Group’s 1Q26 revenue rose 4% to $429m, broadly in line with Jarden’s expectations, while earnings (EBITDA) of $254m were marginally ahead.
The broker notes residential yield growth of 13% met forecasts, offsetting softer performance from India, where revenues declined -20%. Cost control is seen as a positive, with full-year guidance unchanged following the removal of Housing Edge from forecasts.
Jarden trims FY26 EBITDA and EPS forecasts by -0.6% and -1.1%, respectively, and lowers its target to $207 from $212. The rating is upgraded to Neutral from Underweight after recent share price underperformance.
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