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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HUB24 LIMITED ((HUB)) Upgrade to Buy from Hold by Moelis and Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Hub24's quarterly trading update surprised yet again to the upside, though costs are growing too and growth in advisors is slower. Moelis' forecasts remain largely unchanged.
Rating is upgraded to Buy from Hold inspired by preceding share price weakness. The broker's price target is now $118.04, which remains well above the share price.
Part of the broker's enthusiasm is related to the upcoming launch of the company's lifetime retirement solution with TAL, part of Dai-ichi Life (expected 2H of FY26).
Commentary explains this new product goes towards addressing Superannuation clients currently in pension phase, therefore aiming to retain FUA on the Hub platform.
Hub24 has yet again, albeit marginally this time, beaten expectations with its quarterly trading update. Canaccord Genuity has lifted its forecasts post FY26 in response (including higher costs).
As the analyst continues to believe Hub24's long-term growth potential remains attractive, with the platform expected to continue increasing market share, in combination with recent share price weakness this sees the rating upgraded to Buy from Hold.
Canaccord Genuity's price target has lifted to $115.15 from $114.95 with commentary explaining valuation is done on an equally weighted blend of DCF, SOTP and PER valuations.
IGO LIMITED ((IGO)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity has upgraded its lithium price forecasts, noting recent price increases on strong EV and storage demand and ongoing supply disruptions. Price forecasts for spodumene and chemicals are lifted by an average of 61% and 29% for 2026 and 2027, respectively.
The broker made sharp increases to IGO Ltd's EBITDA forecasts for FY26-28. Target rises to $10.10 on higher lithium price forecasts and a lift in EBITDA multiple to 7x from 6x.
Rating upgraded to Buy from Hold.
LOVISA HOLDINGS LIMITED ((LOV)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Lovisa Holdings is upgraded to Buy from Hold by Canaccord Genuity with a new target of $36 from $37 due to a slight downward EPS forecast change for FY26.
The analyst believes the risk reward scenario for the stock has improved, with new store roll outs expected to improve FY27 earnings cadence, improved operating costs post a period of investment, and the share price retracement of around -30% over the last four months.
At the interim earnings report, the broker expects net profit after tax of $65m, which sits around -4% below consensus.
LIONTOWN LIMITED ((LTR)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity has upgraded its lithium price forecasts, noting recent price increases on strong EV and storage demand and ongoing supply disruptions. Price forecasts for spodumene and chemicals are lifted by an average of 61% and 29% for 2026 and 2027, respectively.
The broker made sharp increases to Liontown's EBITDA forecasts for FY26-28. Target rises to $2.40 on higher lithium price forecasts, updated valuation methodology and a lower discount rate of 8% from 10%.
Rating upgraded to Buy from Hold.
MIRVAC GROUP ((MGR)) Upgrade to Buy from Neutral by Jarden.B/H/S: 0/0/0
Ahead of the February results season, sector analysts at Jarden have updated mark-to-market and valuations modeling, incorporating recent news flow and fresh insights.
Overall, sector earnings estimates have changed only slightly, and the same goes for valuations. The update has generated four changes in ratings for individual stocks in the sector.
Mirvac Group's rating has improved to Buy from Neutral. Target price is now $2.55 (up from $2.50).
LOTTERY CORPORATION LIMITED ((TLC)) Upgrade to Overweight from Underweight by Jarden.B/H/S: 0/0/0
Jarden upgrades Lottery Corp to Overweight from Underweight with a higher target of $5.30 from $5.20, pre the company's 1H26 result on February 18.
The recent weakness in the stock price infers to the analyst that likely earnings downgrades are already discounted in market expectations, with the current share price mirroring the theoretical jackpot activity over the near term.
This will be the new CEO's first result and management is expected to look through the jackpot weakness and announce an interim dividend of 8.5cps, with the broker forecasting 17cps for FY26.
Jackpot weakness is already anticipated to impact the lotteries results, with turnover expected to be down -2% y/y due to unfavourable jackpot sequences rather than demand weakness.
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