Weekly Reports | 11:10 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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EAGERS AUTOMOTIVE LIMITED ((APE)) Upgrade to Buy from Hold by Moelis.B/H/S: 0/0/0
Moelis has upgraded Eagers Automotive to Buy from a Hold rating with a $26.35 target following a weaker-than-expected 1H26 result, largely attributed to timing impacts from the CanadaOne acquisition delay, a weaker Canadian dollar, and constrained supply from BYD and Toyota limiting deliveries despite record order intake.
The broker notes the A&NZ order bank has surged 70% since December 2025, supporting a stronger 2H26 as supply conditions improve, though higher interest costs provide a partial offset.
CanadaOne continues to outperform in a weak Canadian market, with significant industry consolidation opportunities seen supporting medium-term double-digit growth.
FY26-FY28 EPS estimates have been trimmed -3-8% to reflect the CanadaOne settlement delay, higher interest costs, and the closure of underperforming operations.
EPS forecasts are revised to 106.0c for FY26 and 126.2c for FY27, with DPS at 80.2c and 93.6c.
TREASURY WINE ESTATES LIMITED ((TWE)) Overweight by Jarden.B/H/S: 0/0/0
Jarden maintains an Overweight rating for Treasury Wine Estates with a $5.00 target price following incremental strategic disclosures at the 2026 Strategy Day.
Structural portfolio optimization will consolidate the current line-up from 76 brands down to fewer than 30 priority brands within five years.
Near-term projections point to FY26 earnings before interest, tax, and SGARA (EBITS) arriving between $480m and $490m, representing a stabilizing floor for the business.
Extended inventory rebalancing timelines across Americas distribution channels prompt a -9% to -10% reduction to FY27 and FY28 earnings estimates.
The report concludes decisive cost-out execution and streamlined logistics structures position the business to safely peak net leverage at 2.9x before returning below target thresholds by FY28.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | EAGERS AUTOMOTIVE LIMITED | Buy | Neutral | Moelis | |
| 2 | TREASURY WINE ESTATES LIMITED | Buy | Neutral | Jarden | |
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