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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PRO MEDICUS LIMITED ((PME)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades Pro Medicus to Buy from Hold although acknowledges macro risks will overhang the stock in the near term while the long-term outlook is unchanged with strong growth rates likely continuing for a number of years.
The broker points out the share price since the first half result has fallen a further -6%, largely related to macro events that are beyond management's control.
The report also states it is important to note this is not a cyclical business and customers are largely insulated from the impacts of higher oil prices. Target is $145.03.
PREMIER INVESTMENTS LIMITED ((PMV)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Premier Investments delivered a first half result that was in line with expectations. The main issue for Jarden is whether FY26 EBIT guidance is achievable when provided so early in the half and whether Smiggle can recover.
With a new CEO for Smiggle having been announced and a renewed focus on product, the broker concludes the company can stabilise the business.
Market expectations appear low yet, while headwinds are building in terms of interest-rate hikes and petrol prices, Jarden assesses the stock is insulated with an active buyback, management alignment and net cash.
Rating is upgraded to Overweight from Neutral. Target is reduced to $15.50 from $16.90.
SIMS LIMITED ((SGM)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
Sims materially upgraded FY26 guidance with group earnings (EBIT) of $350-400m now expected, around 23% above prior consensus.
Jarden highlights a stronger Metals performance driven by North America and pricing tailwinds, alongside Sims Lifecycle Services (SLS) benefiting from elevated dynamic random access memory (DRAM) pricing.
The FY26 earnings forecasts is lifted by 50% with further increases across FY27-28, reflecting improved operating momentum.
Jarden raises its target price to $21.50 from $19.50 and upgrades to Neutral from Underweight.
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