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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FLIGHT CENTRE TRAVEL GROUP LIMITED ((FLT)) Upgrade to Buy from Overweight by Jarden.B/H/S: 0/0/0
Jarden upgrades Flight Centre Travel to Buy from Overweight with its target price decreased to $15.90 following a profit warning.
Near-term leisure earnings and touring activity faced headwinds from the Middle East conflict, dragging down full-year underlying pre-tax profit expectations to a revised range of $275m to $295m.
The analyst highlights a planned $200m share buyback and the easing of travel restrictions to the Middle East as positive demand catalysts heading into the next period.
Commentary identifies Corporate travel sectors having delivered standout outperformance, securing $1.2bn in contract wins year-to-date to cushion the wider group revenue margin.
Long-term corporate re-rating potential remains structurally sound, the report concludes, as capital-light initiatives and normalised operational tailwinds drive return on invested capital above 18%.
ILUKA RESOURCES LIMITED ((ILU)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity upgrades its rating for Iluka Resources to Buy with its target price increased to $8.45 following a milestone maiden magnet rare earth oxide supply agreement at Eneabba.
The binding multi-year take-or-pay arrangement secures an unnamed automotive major to purchase 90% of a 1,200 tonnes output block starting in 2028, establishing structural ex-China market pricing floors.
The analyst notes a -11% share price retraction post-announcement likely reflects localised market misread complexities surrounding intermediate production volume guidance boundaries.
Sovereign execution risk drops significantly after the Australian government satisfied all conditions precedent to clear a $400m second tranche loan drawdown.
Upgraded forward models integrate higher rare earth oxide pricing premiums, driving significant long-dated EBITDA expansions across 2027 and 2028.
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CENTURIA CAPITAL GROUP ((CNI)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Moelis downgrades Centuria Capital to a Hold rating with its target price reduced to $2.18 from $2.23 following a $292m equity raise to fund data centre expansion and additional real estate investment opportunities.
The capital raising increases shares on issue by 18% and is expected to create near-term EPS dilution, although it provides funding capacity to accelerate Centuria's data centre rollout strategy and seed new property funds.
The analyst notes the medium-term data centre opportunity could be significant, with a potential 23MW rollout and more than 200MW of identified pipeline capacity, though timing, funding structure and economics remain uncertain.
Forecast EPS has been revised to 13.6c, 13.7c and 14.6c for FY26, FY27 and FY28 respectively, while DPS forecasts remain unchanged at 10.4c, 10.6c and 10.8c.
The analyst expects the equity raise to initially weigh on earnings but sees potential upside if Centuria successfully executes its data centre strategy and continues growing funds under management.
REGIS HEALTHCARE LIMITED ((REG)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Jarden downgrades Regis Healthcare to Neutral from Overweight with its target price decreased to $7.50 following a regulatory review of recent sector legislative shifts.
Industry channel checks reveal that initial adoption rates for the Higher Everyday Living Fee voluntary package remain less robust than previously modeled, as macro cost-of-living pressures prompt incoming residents to opt out.
The analyst notes this operational headwind is further compounded by a delayed implementation timeline for federal accommodation supplement increases, which are deferred to March 2027 due to government software bottlenecks.
Revisions drive a -11.3% reduction to FY27 diluted EPS forecasts and a -14.3% drop for FY28 to encapsulate the slowed funding transitions.
Commentary concludes long-term corporate value remains supported by severe macro bed supply deficits, which will eventually catalyse structural accommodation pricing power once immediate legislative head-winds clear.
SIMS LIMITED ((SGM)) Downgrade to Neutral from Overweight by Jarden.B/H/S: 0/0/0
Jarden downgrades Sims to Neutral from Overweight with its target price increased to $30.50 following a strong second-half trading update.
Improved ferrous trading metrics and persistent non-ferrous strength carry the underlying EBIT guidance upgrade to a narrowed band of $420m to $435m.
The analyst attributes notable operational earnings acceleration to the North American Metals division and global data center recycling channels under Sims Lifecycle Services.
While strong benchmark pricing continues to bolster intermediate margins, subdued regional performance persists across the Australia and New Zealand scrap metals sector due to elevated Chinese steel export volumes.
Near-term market outperformance captures much of the immediate macro upgrade cycle, the report concludes, limiting the scope for further consensus valuation revisions.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Upgrade | |||||
| 1 | FLIGHT CENTRE TRAVEL GROUP LIMITED | Buy | Buy | Jarden | |
| 2 | ILUKA RESOURCES LIMITED | Buy | Neutral | Canaccord Genuity | |
| Downgrade | |||||
| 3 | CENTURIA CAPITAL GROUP | Neutral | Buy | Moelis | |
| 4 | REGIS HEALTHCARE LIMITED | Neutral | Buy | Jarden | |
| 5 | SIMS LIMITED | Neutral | Buy | Jarden | |
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