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)
Downgrade
CENTURIA CAPITAL GROUP ((CNI)) Downgrade to Overweight from Buy by Jarden.B/H/S: 0/0/0
Jarden downgrades Centuria Capital to Overweight, with its target price increased to $2.15 from $2.10.
The analyst updates forecasts to reflect a recent $300m equity raising, which lowers pro-forma operating gearing from 12.4% to 3.4%.
These proceeds will fund the acquisition of a 50% interest in the World Square office asset and support the growth of the ResetData business.
The broker notes that the impact of additional securities is broadly offset by debt reduction and incremental co-investment income from properties purchased during the period.
SUNCORP GROUP LIMITED ((SUN)) Neutral by Jarden.B/H/S: 0/0/0
Jarden maintains a Neutral rating for Suncorp Group with its target price reduced to $19.60 from $19.70 following a third consecutive gross written premium downgrade.
The analyst flags risks regarding marginal demand softness in Australia, noting a less supportive environment heading into maiden FY27 guidance.
The broker observes a deliberate margin-over-volume strategy, which may support margin-accretive results even as top-line growth slows.
Earnings support into FY27 is expected to be driven by capital management, potentially including future share buybacks.
TELSTRA GROUP LIMITED ((TLS)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden downgrades Telstra Group to an Underweight rating from Neutral with the target price reduced to $4.60 as its analysis suggests intensifying long-term structural risks facing the telco's core mobile network moat.
Emerging technological shifts like satellite direct-to-device capabilities and universal outdoor coverage regulations threaten to compress the firm's historical mobile pricing premium over peers, the report concludes.
The analyst points out near-term earnings remain secure, framing this asset shift as a distant structural re-rating risk rather than an immediate revenue downgrade threat.
Long-duration cash flows well beyond FY34 carry elevated risk as unique continental coverage benefits gradually equalise across all three major domestic networks.
This network perception erosion prompts the broker to expect terminal multiple compression, likely causing the stock's required dividend yield to drift higher over the medium term.
| Order | Company | New Rating | Old Rating | Broker | |
|---|---|---|---|---|---|
| Downgrade | |||||
| 1 | CENTURIA CAPITAL GROUP | Buy | Buy | Jarden | |
| 2 | SUNCORP GROUP LIMITED | Neutral | Buy | Jarden | |
| 3 | TELSTRA GROUP LIMITED | Sell | Neutral | Jarden | |
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