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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ABACUS GROUP ((ABG)) Upgrade to Buy from Hold by Shaw and Partners.B/H/S: 0/0/0
Shaw and Partners upgrades to Buy for Abacus Group with its target price maintained at $1.05 following an FY26 financial result that printed broadly in line with expectations.
Operational performance remains solid across the office and retail portfolios, though FY27 distribution guidance was reset to 6.7cps following the cessation of management and equity income from Storage King Group ((SKG)).
The broker's estimates indicate that significant asset sales during FY27, including the divestment of the Abacus Group stake in Storage King Group and the Camellia property, will reduce gearing to approximately 25% and provide substantial acquisition capacity.
The analyst highlights the stock trades at a compelling -43% discount to net tangible assets, offering an attractive dividend yield and significant value within the real estate sector.
AMP LIMITED ((AMP)) Upgrade to Overweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden upgrades its recommendation for AMP to Overweight from Neutral with its target price increased to $2.60 from $2.40 on expectations that significant excess capital and effective cash deployment will underwrite the next leg of shareholder returns.
The analyst forecasts that AMP will return $1.3bn to shareholders by FY28 through a combination of annual share buybacks of $300m and a dividend yield.
The broker's estimates indicate that alongside these returns, assuming a debt repayment of $275m at maturity, projected earnings per share upgrades will run 11% above market consensus by FY28.
The analyst highlights that a long-growth runway in China associates and potential bank realisation optionality present a favourable risk-and-reward profile.
AVITA MEDICAL INC ((AVH)) Upgrade to Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity upgrades Avita Medical to Buy with its target price increased to $3.72 following additional context regarding recent revenue guidance upgrades and an outlook for operating cash flow breakeven in the fourth quarter of 2026.
Management outlined minimal changes required to the operating expense base to achieve cash flow breakeven, supported by sales forecasts increasing by 7%-8% across FY27 and FY28 driven primarily by RECELL utilisation.
Clinical milestones include the PermeaDerm-1 trial meeting its primary endpoint by reducing product cost per percentage Total Body Surface Area treated by 70% compared to frozen human cadaveric allograft while cutting preparation time by 96%.
The broker's estimates and valuation reflect proximity to positive cash flow, unwinding potential dilution and supporting an upgraded price target based on a 4.0x EV-to-sales multiple applied to FY27 forecasts.
DEXUS ((DXS)) Overweight by Jarden.B/H/S: 0/0/0
Dexus reported FY26 adjusted funds from operations of 45.0c, tracking closely against consensus expectations of 45.2c.
Management issued FY27 adjusted funds from operations guidance of 37.5c to 39.5c, reflecting well-flagged sector headwinds and project delays.
The broker has trimmed estimates to account for these ongoing pressures.
Supported by valuation appeal relative to peers, Jarden maintains an Overweight rating while reducing the target price to $6.19 from $6.20.
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