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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ASX LIMITED ((ASX)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades ASX to Overweight from Neutral, with a $55.30 target price, following a significant share price dislocation.
Commentary suggests main concerns regarding the absence of a chief executive officer and cost transparency are resolved by Anthony Attia's appointment and recent technology cost guidance.
Technology modernisation and cultural remediation operating expenses will be partly offset in outer years by participant cost-passing mechanisms.
Strong volume momentum remains evident as year-to-date operating revenue reached $1.03bn, an increase of 12.5% on the prior corresponding period.
Near-term dividend recovery faces constraints from a -$150m capital charge due by June 2027, potentially requiring a discounted dividend reinvestment plan.
GRAINCORP LIMITED ((GNC)) Upgrade to Neutral from Underweight by Jarden.B/H/S: 0/0/0
Jarden upgrades to a Neutral rating for GrainCorp with a $5.40 target price following the release of the first winter crop production estimates by ABARES for FY27.
The agency's east coast winter crop estimate of 23.8mmt remains broadly in line with long-term averages, though emerging El Nino risks over June and July pose downside tracking visibility, the broker adds.
Higher raw procurement costs are modeled across the key nutrition and energy crushing facilities due to a -34% year-on-year drop in New South Wales canola production.
Long-term through-the-cycle earnings power assumptions reflect more scepticism than broader consensus expectations, Jarden explains, particularly across the FY28 financial horizon.
The report concludes solid fundamental balance sheet metrics persist, supported by the corporate securities currently trading at a -21% discount to accounting book value.
NICK SCALI LIMITED ((NCK)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity has upgraded Nick Scali to Buy from Hold with its price target lowered to $15.77 from $20.43.
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