In Case You Missed It – BC Extra Upgrades & Downgrades – 27-02-26

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This story features RAMSAY HEALTH CARE LIMITED, and other companies.
For more info SHARE ANALYSIS: RHC
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

A summary of the highlights from Broker Call Extra updates throughout the week past.

Broker Rating Changes (Post Thursday Last Week)

Upgrade

RAMSAY HEALTH CARE LIMITED ((RHC)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0

Jarden upgrades its rating for Ramsay Health Care to Overweight from Neutral ahead of its 1H26 result on February 26, despite lowering its price target by -4.2% to $40.60.

The latter is due to earnings forecast downgrades of -9.6%/-12.7%/-11.5% across FY26-28. While UK and European headwinds and FX have driven forecast cuts, the broker sees the Australian business turning the corner. 

Improving Australian margins are noted, supported by stronger revenue growth and a 4.41% premium increase for private health insurers, aiding upcoming contract negotiations.

The analyst also highlights the pending strategic review, with a potential divestment of Ramsay Sante seen as balance sheet positive. 

SANDFIRE RESOURCES LIMITED ((SFR)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0

Canaccord Genuity raises its target for Sandfire Resources to $21.00 from $19.50 and upgrades to Buy from Hold following interim results and after allowing for the Kalkaroo acquisition.

Interim earnings (EBITDA) of US$304m were in line with the broker’s forecast, while profit of US$107m beat expectation on lower tax.

Free cash flow (FCF) of US$157m represented 52% conversion and raised the balance sheet to net cash of US$13m.

The broker values the Kalkaroo deposit (large undeveloped copper-gold in South Australia) at -$1.7bn on a risked basis and sees potential for a larger-scale development over time.

Guidance was largely unchanged aside from higher study and exploration spend, explains the broker.

TECHNOLOGY ONE LIMITED ((TNE)) Upgrade to Buy from Overweight by Jarden.B/H/S: 0/0/0

Jarden lowers its target for TechnologyOne by -$2.00 to $30.00 and upgrades to Buy from Overweight following the company’s AGM update. It’s felt the current share price implies conservative medium-term annual recurring revenue (ARR) assumptions.

Management guided to FY26 profit before tax (PBT) growth of 18-20% and ARR growth of 16-18%, modestly ahead of prior consensus, highlight the analysts.

The broker views TechnologyOne as well positioned to defend and benefit from AI adoption, underpinned by high retention and structural moats. Potential is seen to exploit opportunities beyond the current $1bn FY30 ARR aspiration.

Downgrade

EMECO HOLDINGS LIMITED ((EHL)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0

Jarden downgrades Emeco Holdings to Neutral from Overweight and lifts its target price to $1.30 from $1.05 following a better than expected 1H26 result against consensus.

Net profit after tax was 8% above consensus and 12% above the analyst’s forecast, while qualitative FY26 guidance for moderate earnings growth was reiterated and remains broadly unchanged.

The target price increase reflects higher long term earnings assumptions and a lift in terminal growth to 2.5%, with the broker citing potential capital returns and dividend reinstatement over FY27 to FY28 as key catalysts.

Price Target Changes (Post Thursday Last Week)

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