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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BRAMBLES LIMITED ((BXB)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades Brambles to an Overweight rating with a $25.15 price target following share price underperformance and resilient customer results.
Commentary suggests volume resilience in key regions like North America and a structured pricing environment provide support for achieving the FY26 constant currency EBIT growth guidance range.
Core earnings per share estimates have been revised downwards by -0.6% and -0.5% for FY26 and FY27 to reflect potential EBIT margin pressure and cost inflation.
Cost reductions anticipated to lift second half underlying EBIT by US$15m should help offset higher IPEP charges and near-term earnings exposure in EMEA.
Downside risks are viewed as largely protected by the current valuation, which incorporates updated discounted cash flow assumptions and caution regarding negative trading updates.
HMC CAPITAL LIMITED ((HMC)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades HMC Capital to an Overweight rating from Neutral and maintains a $3.10 target price following a positive update detailing plans to streamline the platform.
The broker notes key strategic moves include returning capital to HMC Capital Partners investors, generating $15m in cost savings from FY27, and divesting $1bn in US digital assets to refocus on the Australian market.
Management reaffirmed operating earnings per share guidance above 40.0c, supported by organic growth in the private credit platform featuring $1bn in advanced documentation.
Reflecting the capital unwind largely offset by cost savings, the report lowers earnings per share forecasts to 30.1c from 31.2c in FY27, and to 33.1c from 33.8c in FY28, while FY26 estimates remain steady at 34.6c.
Strong valuation support and potential near-term catalysts, such as the resolution of issues at HealthCo Healthcare and Wellness REIT ((HCW)), underpin the ongoing positive view.
INGHAMS GROUP LIMITED ((ING)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades Inghams Group to an Overweight rating from Neutral and raises the $2.70 target price from $2.50 following a positive strategy day.
The report highlights increased forecasts driven by improving 2HYTD trading and contract wins, despite a temporary headwind from Middle East fuel costs.
Management reaffirmed FY26 EBIT guidance of $180m to $200m and identified $130m in gross productivity opportunities through FY31, the broker reports.
Earnings per share forecasts have been revised upward to 12.3c from 12.1c for FY26 and to 18.7c from 18.0c for FY27.
Dividend estimates for the same periods are projected at 8.7c and 13.2c.
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