Weekly Ratings, Targets, Forecast Changes – 12-06-26

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This story features BRAZILIAN RARE EARTHS LIMITED, and other companies.
For more info SHARE ANALYSIS: BRE
The company is included in ALL-ORDS

Weekly update on stockbroker recommendation, target price, and earnings forecast changes.

By Mark Woodruff

Guide:

The FNArena database tabulates the views of seven major Australian and international stockbrokers: Citi, Bell Potter, Macquarie, Morgan Stanley, Morgans, Ord Minnett, and UBS.

For the purpose of broker rating correlation, Outperform and Overweight ratings are grouped as Buy, Neutral is grouped with Hold and Underperform and Underweight are grouped as Sell to provide a Buy/Hold/Sell (B/H/S) ratio.

Ratings, consensus target price and forecast earnings tables are published at the bottom of this report.

Summary

Period: Monday June 8 to Friday June 12, 2026
Total Upgrades: 3
Total Downgrades: 6
Net Ratings Breakdown: Buy 66.20%; Hold 27.17%; Sell 6.63%

For the shortened week ending Friday, June 12, 2026, FNArena recorded three upgrades and six downgrades in ratings for individual ASX-listed stocks from seven brokers monitored daily.

Online property advertiser and owner of realestate.com.au REA Group received two rating downgrades by separate brokers.

UBS highlighted the possibility of the Australian housing market weakening “materially” due to the lagged effect of interest rate hikes, as well as the Budget measures.

As explained further in https://fnarena.com/index.php/2026/06/10/treasure-chest-rea-group-2/, Bell Potter sees average dwelling prices as a more important leading indicator for residential revenue, which contributes around 70% of REA’s group revenue.

Although management has some scope to manage operating costs, Bell Potter suggests falling average dwelling prices will have a negative impact on volumes and most probably group EPS.

Bell Potter is the only one to set a new price target (marginally) below the current share price.

Declines in average target prices (valuations) outweigh increases in the tables below, while falls in average earnings forecasts are of a greater magnitude than positive adjustments.

Specialty chemicals company Alpha HPA’s target fell by -23%, as Ord Minnett initiated coverage with a lower target than Macquarie and Bell Potter.

Ord Minnett highlighted the company’s proprietary solvent extraction technology, which is expected to deliver high-purity alumina (HPA) at low operating costs and with a lower carbon footprint than incumbent producers’.

HPA is a chemical used for high tech applications including lithium-ion batteries and semiconductors.

A 10ktpa plant in Gladstone to produce HPA, currently under construction by Alpha HPA, is scheduled for completion in late 2027.

Resuming coverage last week, Macquarie pointed to “a compelling opportunity for long-term investors with exposure to the rapidly scaling AI theme and prospect for healthy returns”.

This broker highlighted Alpha’s product is entering the market at an opportune time, with high-purity alumina emerging as the preferred ceramic for chip packaging substrates due to its superior thermal performance, offering up to 30 times the conductivity of incumbent silica.

Peter Warren Automotive and Lendlease Group suffered declines in consensus targets of -17% and -10%, respectively.

Ord Minnett lowered its target for Peter Warren by -80c to $1.20 after management delivered a weaker-than-expected trading update on June 1.

This disappointment reflected a sharp shift in consumer demand driven by higher fuel prices, rising interest rates and ongoing cost-of-living pressures, explained the broker.

Customers are increasingly favouring smaller, more fuel-efficient vehicles, reducing sales of higher-margin models.

Rapid changes in buying patterns were also noted (disrupting vehicle availability and delivery schedules), creating additional earnings headwinds.

Lendlease announced a rise in its FY26 underlying gearing ratio, prompting Ord Minnett to lift its forecast by 10.3 percentage points to 35.7%.

This broker’s funds from operations forecasts were lowered by -75.9% for FY27 and by -8.5% for FY28.

More positively, Citi points out the company has secured $4.7bn of development project wins and $6.5bn of construction contract wins in FY26 year-to-date, supporting future earnings and backlog growth.

Both Lendlease and Peter Warren also appear second and third for negative change to earnings forecasts, behind Synlait Milk’s -73% downgrade.

Synlait’s June 9 trading update revealed a net loss of -NZ$12m for January to April 2026. Bell Potter adds that loss includes an estimated profit from the sale of the company’s North Island site for NZ$21m.

While this broker lowered its FY26 earnings forecast by -57%, investors are reminded the numbers involved are small.

Bell Potter’s price target fell to 38.5c from 42c and the Hold rating was left unchanged.

On the flipside, Sims, one of the world’s largest metal recycling and circular economy companies, heads up the week’s table for positive change to targets with a 9% rise after Macquarie raised its target to $31.90 from $22.30.  The company’s average earnings forecast increased by 10%.

The earnings contribution from the IT asset recovery and re-sale business Sims Lifecycle Services (SLS) should remain resilient, according to Macquarie, with growth in services and geographic expansion.

Macquarie forecasts higher-for-longer memory prices for Double Data Rate 4 (DDR4), the fourth-generation DRAM memory standard used in computers, servers and data centres.

The broker also remains positive on the outlook for the Metals division, citing favourable conditions across both ferrous and non-ferrous markets.

Contractor SRG Global received a 9% boost to its average target price last week after Morgans raised its target by $1.00 to $4.20.

The broker was reacting to upgraded FY26 guidance on June 2 and the issuance of new FY27 guidance after management secured $1.85bn of contracts with blue chip clients across a diverse range of sectors.

Management noted “the company is exceptionally well positioned to continue to deliver long-term sustainable growth”.

After leading the table the previous week for the largest increase in average target price, network-as-a-service and infrastructure-as-a-service provider Megaport tops this week’s list for earnings upgrades, with average forecasts rising 35%.

Morgans increased its FY27 and FY28 earnings forecasts for Megaport by 88% and 218%, respectively, and raised its target to $21.00 from $15.50.

These changes follow management’s expansion into AI infrastructure from network connectivity, supported by recent contract wins and an $809m capital raising.

Morgans highlights Megaport’s growing exposure to AI inference, with its communications network and data centre footprint providing a competitive advantage in delivering integrated connectivity, CPU and GPU services.

Customers typically spend substantially more on compute than connectivity solutions, Morgans noted.

The broker downgraded its rating to Accumulate from Buy following an around 90% share price rally in the last month.

Both Megaport and SRG Global featured in last week’s Rudi’s View article, highlighting strategic operational shifts aimed at increasing exposure to strong demand generated by the data centre supercycle.

For more details see https://fnarena.com/index.php/2026/06/10/rudis-view-market-momentum-investor-dilemmas/

Management at SRG recently highlighted data centres alongside water, energy, resources, defence, transport and ports as key growth sectors. Specifically for data centres, the company has won business connected to NextDC via the Malaga data centre in Perth.

Speaking of AI-related exposures, FNArena also published a story on how management at Wesfarmers intends to raise productivity via utilising AI tools at https://fnarena.com/index.php/2026/06/12/ai-helps-accelerate-wesfarmers-ambitions/.

Wesfarmers appears in both the positive change to average target and forecasts tables below.

Total Buy ratings remain historically elevated at 66.37%, with Sell ratings at just 6.59%, leaving 27.05% on Neutral/Hold.

Upgrade

BRAZILIAN RARE EARTHS LIMITED ((BRE)) Upgrade to Speculative Buy from Hold by Ord Minnett .B/H/S: 1/0/0

Brazilian Rare Earths reported encouraging exploration results from the Velhinhas prospect, according to Ord Minnett.

Drilling, geophysics and rock-chip sampling have outlined a rare earth corridor extending more than 9km south of the Monte Alto project.

The results reinforce the potential for a district-scale rare earth system and provide longer-term growth opportunities beyond the company’s core Monte Alto deposit, the broker believes.

Commentary also notes Velhinhas could benefit from shared infrastructure and lower development costs due to its proximity to Monte Alto.

Ord Minnett upgrades its rating to Speculative Buy from Hold and retains a $6.95 target.

IDP EDUCATION LIMITED ((IEL)) Upgrade to Buy from Hold by Morgans .B/H/S: 2/1/1

IDP Education faces ongoing pressure from weaker student visa volumes and lower grant rates across Australia, Canada and the UK, Morgans notes, reflecting tighter immigration policies in key markets.

Despite the challenging backdrop, the analyst points to rapid expansion of IELTS testing centres in China and progress on a -$25m cost reduction program. Ongoing pricing power across both testing and student placement services is also noted.

The broker also sees longer-term support from technology initiatives and structural demand for international education.

While FY26 and FY27 earnings forecasts have been reduced, Morgans views the current downturn as cyclical rather than structural.

Target reduced to $3.15 from $6.30 on materially lower earnings forecasts and a change in valuation method. Rating upgraded to Buy from Hold.

VYSARN LIMITED ((VYS)) Upgrade to Buy from Speculative Buy by Morgans .B/H/S: 1/0/0

In a deal expected to be around 25% earnings-per-share accretive, Vysarn will acquire irrigation and water infrastructure specialist NewGround. Morgans highlights this move will improve earnings quality and reduce exposure to mining cycles.

NewGround provides design, construction and maintenance services for industrial-scale irrigation and water management systems.

It’s felt the acquisition strengthens the company’s strategy of building an integrated water services platform, adds a defensive, recurring revenue stream, and broadens Vysarn’s customer base.

Morgans increases its FY27 and FY28 earnings forecasts by 19% and 24%, respectively. The target is raised to $1.10 from $0.90 and the rating is upgraded to Buy from Speculative Buy

Downgrade

MEGAPORT LIMITED ((MP1)) Downgrade to Accumulate from Buy by Morgans .B/H/S: 5/1/0

Megaport’s expansion into AI infrastructure from network connectivity has driven a sharp improvement in Morgans’ earnings expectations, supported by recent contract wins and an $809m capital raising.

The broker highlights the company’s growing exposure to AI inference, noting its communications network and data centre footprint provide a competitive advantage in delivering integrated connectivity, CPU and GPU solutions.

Megaport has materially expanded its addressable market, with customers typically spending significantly more on compute services than connectivity, the analyst explains.

Following recent major contract wins, Morgans increased its FY27 and FY28 earnings forecasts by 88% and 218%, respectively.

The target is raised to $21.00 from $15.50 and the rating downgraded to Accumulate from Buy.

REA GROUP LIMITED ((REA)) Downgrade to Sell from Buy by Bell Potter and Downgrade to Neutral from Buy by UBS .B/H/S: 4/2/1

Bell Potter has downgraded REA Group to Sell from Buy with a lower target price of $137 from $217 after adjusting for an expected decline in national house prices following rate hikes and the Australian budget.

Historically, over FY19 and FY23, when dwelling prices fell, REA experienced notable declines in listings of -8% and -12%, respectively.

On those occasions, residential segment revenue and group EPS fell -9% and -8%, respectively, on a half-yearly basis, the analyst states.

Updated modeling now incorporates a -10% decline in listings for FY27, compared to -2% previously, partially offset by the group’s ability to protect its margin.

EPS forecasts are lowered by -1% for FY26, -14% for FY27, and -13% for FY28.

UBS is the second broker to flag rising risks to REA Group’s near-term volumes due to the recent property tax changes. The analyst now forecasts a decline in volumes of around -10%, cumulatively, for FY27-FY28.

This equates to the tightening cycle experienced in FY18-FY19. Notably, volumes have slipped by a CAGR of -1.5% “structurally”, UBS states, since FY13, while the only substantial house price fall occurred in FY18-FY19 during a macroprudential tightening cycle, the Banking Royal Commission.

UBS now expects house prices to fall by around -3% to -5% in the next year and reduces volume growth to -8% from flat.

REA Group is downgraded to Neutral from Buy, with a lower target of $165 from $213. EPS estimates are cut by -8% for FY27 and -11% for FY28.

STEADFAST GROUP LIMITED ((SDF)) Downgrade to Hold from Buy by Ord Minnett .B/H/S: 4/1/0

Steadfast Group has received a takeover bid from a consortium led by American insurers distributor Amwins. The bid, at $6 a share, is around a 50% premium to recent trading levels and the board intends to recommend accepting the offer subject to no superior bid emerging.

The transaction, to be implemented by a scheme of arrangement, provides eight weeks of due diligence with a potential extension to August 20. This follows previous bids from the consortium that were rejected.

The broker points out, without the current bid, the chances of realising value for the company at $6 a share in the near future appear remote. Rating is reduced to Hold from Buy and the target raised to $6.00 from $5.55.

TECHNOLOGY ONE LIMITED ((TNE)) Downgrade to Hold from Buy by Bell Potter .B/H/S: 4/2/0

Bell Potter downgrades TechnologyOne to Hold from Buy, with no change to earnings forecasts and a higher target price of $34.25 from $32.25. The stock is considered to offer “reasonable” value at 66x FY26 PE and 55x FY27 PE.

The company is viewed as one of the best SaaS businesses on the ASX, but at current pricing its valuation is almost double that of WiseTech Global ((WTC)).

The analyst also highlights an absence of near-term catalysts to drive the share price higher, with no change to FY26 guidance expected.

The next catalyst may come at the FY26 result in November, when TechnologyOne may exceed its ARR guidance.

WESFARMERS LIMITED ((WES)) Downgrade to Neutral from Outperform by Macquarie .B/H/S: 1/4/1

After attending Wesfarmers investor day, Macquarie highlights an increasing focus on digital initiatives. These include artificial intelligence, omni-channel capabilities, loyalty integration and retail media, to drive customer engagement and growth.

The broker sees retail media as a particularly attractive opportunity for Bunnings, leveraging its large customer base and high foot traffic.

Growth across Bunnings, Kmart and Officeworks is expected via category expansion and improved space productivity.

Commentary notes Health and Lithium are also entering a phase of stronger earnings contribution.

Macquarie raises its target to $85.00 from $84.00 but downgrades to Neutral from Outperform, citing limited valuation support and a lack of near-term earnings catalysts.

Total Recommendations	Recommendation Changes
Broker Recommendation Breakup

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