Weekly Reports | 1:57 PM
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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COLLINS FOODS LIMITED ((CKF)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Collins Foods has reported stronger second-half trading with same-store sales growth accelerating versus the first half, Jarden highlights. Guidance for mid-high teens profit growth was reaffirmed.
The broker notes the acquisition of eight Bavarian restaurants at around a 6x earnings multiple, expected to be immediately earnings accretive.
The transaction is expected to open a new German market and lift the company’s expansion target to 45-90 stores over four years.
FY26-FY28 profit forecasts rise by 2-5% after incorporating the acquisition and stronger trading momentum.
Jarden upgrades to Overweight from Neutral and raises its target price to $12.10 from $11.40.
LIFESTYLE COMMUNITIES LIMITED ((LIC)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
Lifestyle Communities has attracted strategic interest, with Jarden noting HMC Capital ((HMC)) sold a 9.8% stake to Hometown Australia at $4.90, an 8% premium to market.
The buyer’s background is in the manufactured housing estate sector. No immediate takeover intentions were declared by Hometown.
The analysts see operational challenges persisting for Lifestyle Communities, including slow sales, margin pressure, and balance sheet constraints limiting recovery potential.
The broke's valuation rises on higher multiples reflecting takeover appeal despite ongoing risks.
Jarden upgrades to Neutral from Underweight and raises its target price to $6.25 from $5.75.
RELIANCE WORLDWIDE CORP. LIMITED ((RWC)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden believes the value proposition in Reliance Worldwide is becoming hard to ignore.
The broker sees its view reinforced by the additional $120m buyback announcement and increasing an already compelling capital return profile for a stock that has de-rated to 11x from 13x one-year forward PE since the first half results.
At current levels, the broker believes valuation provides sufficient support for a more constructive stance although the copper-to-stainless transition remains a strategic shift that merits ongoing scrutiny.
Rating is upgraded to Overweight from Neutral and the target lifted to $4.30 from $3.80.
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SYRAH RESOURCES LIMITED ((SYR)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Jarden lowers its target for Syrah Resources to 30c from 34c and downgrades to Neutral from Overweight.
The company faces a weaker outlook, the broker suggests, after the US International Trade Commission (ITC) ruled against duties on Chinese active anode material (AAM) imports, removing a key expected catalyst.
The broker highlights anti-dumping duties and countervailing duties rates of at least 160% will not proceed, reducing confidence in durable trade protection.
Increased risk to commercial agreements is envisaged, with Tesla’s offtake now vulnerable amid a shift in negotiating leverage.
The analysts see downside risks rising from ongoing cash burn, delayed Vidalia sales, and potential equity dilution.
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