Weekly Reports | 10:35 AM
A summary of the highlights from Broker Call Extra updates throughout the week past.
Broker Rating Changes (Post Thursday Last Week)?
Upgrade
BIG RIVER INDUSTRIES LIMITED ((BRI)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis raises its target for Big River Industries to $1.68 from $1.60 and upgrades to Buy from Hold.
The company will acquire John’s Building Supplies for -$17m, adding scale in Western Australia and strengthening exposure to higher-margin product categories such as structural timber, engineered wood and cladding, explains the broker.
The analyst highlights John’s Building Supplies' solid financial profile, with three-year average revenue of $41.2m and earnings of $5.2m. The deal is expected to be earnings accretive.
A $10m entitlement offer at a -2% discount to the 10-day VWAP will partly fund the upfront consideration.
Management's latest trading update indicates to Moelis improving daily sales and resilient gross margins despite ongoing softness in several residential markets.
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. Target rises to $220 from $200.
OBJECTIVE CORPORATION LIMITED ((OCL)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis states Objective Corp's electronic content management platform is well positioned to enable AI, and it has now branded its AI enabled services as “Objective Intelligence.”
The analyst believes Objective Intelligence is a significant incremental opportunity, allowing customers to share information with AI securely and efficiently.
Moelis has not updated earnings forecasts, so AI upside is not yet explicitly captured in estimates, while core growth remains underpinned by migration to Nexus SaaS, Build planning rollout, and Regulatory Solutions wins.
Rating is upgraded to Buy from Hold, with the broker arguing the stock trades at a material discount to its valuation and Objective Intelligence offers additional upside on top of existing strategies. Target remains at $24.29.
Downgrade
GREATLAND RESOURCES LIMITED ((GGP)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Greatland Resources intends to release outcomes from the Havieron feasibility study early in December, which Jarden notes will mark the first material update on the project since the 2024 admission document.
The broker accounts for potential scope changes, significant capital expenditure inflation and a longer development schedule. First production is still expected in FY28 but the forecast ramp up profile is lengthened.
Underground mining costs are expected to reflect ongoing industry cost pressures. Jarden's -$70/t real underground mining cost forecast now is 40% higher than the 2024 company estimate.
Rating is downgraded to Neutral from Overweight as despite Havieron being one of the best undeveloped projects in Australia, the economics have been reduced. Jarden lowers the target to $5.50 from $6.90.
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