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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CHARTER HALL SOCIAL INFRASTRUCTURE REIT ((CQE)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis suggests the recent sell-off in Charter Hall Social Infrastructure REIT shares creates an attractive entry point.
Earnings accretive capital recycling continues, combined with strong organic rental growth to offset the impact of higher debt costs.
The REIT is attractively valued at a -26% net tangible asset discount following a -16% sell-off over the past five months. Moelis upgrades near-term estimates driven by higher-yield asset remixing, with a more hawkish rate outlook offsetting these gains in FY28.
Target price increases to $3.55 from $3.39, upgrade to Buy from Hold.
CHARTER HALL RETAIL REIT ((CQR)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Charter Hall Retail REIT has transitioned over the last two years to having just 46% of shopping centres in its portfolio from being a pure convenience shopping centre owner, and the remixing of its property portfolio has been largely earnings accretive, Moelis notes.
Continued capital recycling, a -40 basis points reduction in debt margins and timely hedge activity have largely offset the impact of higher interest rates on the outlook.
Following a -11% decline in the share price over the past six months, the broker considers the stock now in value territory and upgrades to Buy from Hold. Target is raised to $4.48 from $4.33.
FINEOS CORPORATION HOLDINGS PLC ((FCL)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades Fineos Corp to Buy from Hold, noting successful execution of large scale projects has underpinned the company's competitive position.
The business has set clear medium to longer term goals with management targeting 75% of revenue from subscriptions in FY29 and 40% EBITDA margins, with slowing investment in R&D.
The broker ascertains 2025 guidance is aligned with progress towards these goals. FX headwinds will deliver revenue at the lower end of guidance, commentary points out, which adds to some uncertainty about estimates for 2026.
Currency is an external factor and does not detract from underlying progress, Moelis adds. Target is $3.27.
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