Weekly Reports | 11:00 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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ASPEN GROUP LIMITED ((APZ)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades its rating on Aspen Group to Buy from Hold while maintaining a $5.98 price target following the recent share price decline.
The broker considers the -20% retreat since February an attractive entry point as the company delivers strong operational results.
Operating earnings per share for the first nine months reached 17.6c, representing 82% of the unchanged full-year guidance of 21.5c.
While macro uncertainty following conflict in the Middle East presents a risk to interest rates, the broker expects resilient rental income and development settlements to underpin the operational performance.
Estimates were slightly adjusted to account for higher funding costs, partially offset by more optimistic leasing assumptions.
ABACUS STORAGE KING ((ASK)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis upgrades Abacus Storage King to Buy from Hold with an unchanged $1.59 target price.
The broker observes the current share price appears attractive following a recent sell-off, offering an implied cap rate of 6.4%.
Earnings estimates were slightly adjusted to account for a higher cost of debt, though dividend forecasts remain unchanged across the forecast period.
Yield is expected to grow as the company delivers on its $620m development pipeline and stabilises previously completed assets.
Commentary suggests potential internalisation of management functions could lead to corporate cost savings, though these are not yet incorporated into estimates.
EMERALD RESOURCES NL ((EMR)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity maintains a Buy rating on Emerald Resources with an unchanged $8.20 price target following March quarter production at the Okvau mine.
The broker observes production was below expectations, although costs were better than forecast, supported by reduced reliance on diesel through grid power usage.
Achieving the low end of full-year guidance will require a strong final quarter, the broker notes.
Forecasts have been updated to reflect recent production trends.
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ORORA LIMITED ((ORA)) Downgrade to Neutral from Buy by Jarden.B/H/S: 0/0/0
Jarden downgrades its rating on Orora to Neutral from Buy and lowers the target price to $1.80 from $2.60 following a significant downgrade to earnings guidance.
The broker reset its earnings assumptions across the board, with core earnings per share forecasts cut by -14% for FY26 and -28% for FY27.
This shift reflects a trading update for the Saverglass business, which is facing direct and indirect impacts from conflict in the Middle East alongside softening demand.
An additional concern is noted regarding the pause in the on-market share buyback program, which previously underpinned the growth outlook.
The broker observes that visibility for Saverglass demand remains limited and expects no near-term acceleration in earnings dynamics.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | ABACUS STORAGE KING | Buy | Neutral | Moelis | |
| 2 | ASPEN GROUP LIMITED | Buy | Neutral | Moelis | |
| 3 | EMERALD RESOURCES NL | Buy | Neutral | Canaccord Genuity | |
| Downgrade | |||||
| 4 | ORORA LIMITED | Neutral | Buy | Jarden | |
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