ASX Broker Moves: Upgrades for A2 Milk Co., Cochlear, Pro Medicus vs Downgrades for Westpac, James Hardie Industries
The ASX stocks enjoying the biggest upgrades, downgrades, and price target changes. What the major brokers loved, hated, and why.
Source: Shutterstock, Market Index
Mentioned
KEY POINTS
- Upgrades: A2 Milk Co. (A2M), Audinate (AD8), Cochlear (COH), Graincorp (GNC), Judo Capital (JDO), Northern Star Resources (NST), Pro Medicus (PME), Treasury Wine (TWE).
- Downgrades: AGL Energy (AGL), Bluescope Steel (BSL), James Hardie Industries (JHX), Lendlease Group (LLC), Northern Star Resources (NST), Westpac Banking Corporation (WBC).
- Target price biggest increases: Bravura Solutions (BVS), Temple & Webster Group (TPW), Mirvac Group (MGR), Computershare (CPU).
- Target price biggest cuts: Syrah Resources (SYR), Talga Group (TLG), Playside Studios (PLY), Orora (ORA).
Welcome to today’s ASX Broker Moves – your most comprehensive source for recent changes in major broker ratings and price targets for the Australian stock market.
The tables below contain data on ratings upgrades, downgrades, and initiations, as well as the biggest price target changes among the broker research reports we’ve received since Friday 14 February.
You will find the full list of broker moves in tonight's edition of Evening Wrap.
Broker Views Snippets
Macquarie on The A2 Milk Company (ASX: A2M) ⬆️: “Despite re-rate, we believe momentum remains, and EL [“English Label”] market outlook was a key positive…we see limited downside catalysts near term, and the P/E is around median post-COVID.” UPGRADE TO OUTPERFORM
UBS on Cochlear (ASX: COH) ⬆️: “Cochlear still faces the prospect of a vaccine against CMV, a major cause of neonatal deafness, developed by Moderna…We still think there is room for downside surprise but a scenario where Moderna's trial fails or efficacy is weak would imply valuation plus circa AUD10 all else equal.” UPGRADE TO NEUTRAL
Bell Potter on Pro Medicus (ASX: PME) ⬆️: “The PME full stack solution continues to wipe the floor with competitors – 10 contract announcements in the LTM [“last 12 months]…we expect further growth in the cardiology space with the first small scale implementation to take place in April 2025.” UPGRADE TO BUY
Morgan Stanley on James Hardie Industries (ASX: JHX) ⬇️: “We remain believers in the structural growth story driven by share gains in new housing and R&R [“remove and replace”], with the over-arching dynamic of an underbuild of housing and aging existing home stock in the US. That said, we think it will be hard for JHX to outperform when key drivers remain benign and with a risk that the forecast recovery is pushed out, creating downside risk for earnings.” DOWNGRADE TO EQUAL-WEIGHT
UBS on Syrah Resources (ASX: SYR) ⬇️: “SYR continues to face significant headwinds at both a company and industry level…On a commodity level we see graphite prices as having bottomed but don't see any nearterm fundamental catalysts that could see prices re-rate with Chinese synthetic capacity still an overhang.” DOWNGRADE TO NEUTRAL AND PRICE TARGET CUT -62.5%
Ord Minnett on Westpac Banking Corp. (ASX: WBC) ⬇️: Broker cites narrower interest margins and increased staff costs reported in Monday’s quarterly update. DOWNGRADE TO LIGHTEN
Shaw and Partners on Bravura Solutions (ASX: BVS) ⬆️: “Highlights of the recent AGM included: 1) EBITDA and cash EBITDA guidance reiterated, 2) continued execution towards strategic pillars and growing pipeline, and; 3) A demonstrated strong financial position.” PRICE TARGET RAISED +70.6%
Rating UPGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
The A2 Milk Company (A2M) | Macquarie | Outperform | Neutral | $7.85 | 10.3% |
Audinate Group (AD8) | Jefferies | Buy | Hold | $12.00 | 25.1% |
Bendigo and Adelaide Bank (BEN) | E&P | Neutral | Negative | $11.00 | -3.3% |
Cochlear (COH) | Bank of America | Neutral | Underperform | $270.00 | -1.8% |
Cochlear (COH) | Jefferies | Buy | Hold | $308.00 | 12.0% |
Cochlear (COH) | JP Morgan | Overweight | Neutral | $311.00 | 13.1% |
Cochlear (COH) | UBS | Neutral | Sell | $285.00 | 3.6% |
Domain Australia (DHG) | Bell Potter | Buy | Hold | $3.30 | 2.8% |
Fisher & Paykel Healthcare Corporation (FPH) | Wilsons | Overweight | Market-Weight | $35.00 | 8.7% |
Graincorp (GNC) | Jefferies | Buy | Hold | $9.00 | 28.2% |
Homeco Daily Needs Reit (HDN) | Moelis Australia | Buy | Hold | $1.36 | 11.5% |
Judo Capital (JDO) | E&P | Positive | Neutral | $2.23 | 15.2% |
Newmont Corporation (NEM) | CLSA | Hold | Underperform | $66.55 | -9.4% |
Northern Star Resources (NST) | CLSA | Outperform | Hold | $19.50 | 8.9% |
Origin Energy (ORG) | Jarden | Neutral | Underweight | $10.25 | -3.3% |
Pro Medicus (PME) | Bell Potter | Buy | Hold | $330.00 | 16.8% |
South32 (S32) | Citi | Buy | Neutral | $4.00 | 8.4% |
Treasury Wine Estates (TWE) | Ord Minnett | Buy | Hold | $12.00 | 10.0% |
Biggest broker price target changes since last update. Price Target Upside/Downside (“PT Upside%”) values in the last column are based on closing prices on most recent session's close.
Rating DOWNGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
AGL Energy (AGL) | Ord Minnett | Hold | Accumulate | $11.00 | 2.6% |
Bluescope Steel (BSL) | Jarden | Underweight | Neutral | $23.30 | -7.7% |
Cochlear (COH) | RBC Capital Markets | Sector Perform | Outperform | $312.00 | 13.5% |
Cochlear (COH) | Wilsons | Market-Weight | Overweight | $280.00 | 1.8% |
Civmec (CVL) | Morgans | Hold | Add | $1.10 | 8.9% |
Domain Australia (DHG) | Jarden | Overweight | Buy | $3.30 | 2.8% |
James Hardie Industries (JHX) | Morgan Stanley | Equal-Weight | Overweight | $55.00 | 7.9% |
Lendlease Group (LLC) | Citi | Neutral | Buy | $8.00 | 18.2% |
Northern Star Resources (NST) | Bell Potter | Hold | Buy | $20.00 | 11.7% |
Orora (ORA) | Jefferies | Hold | Buy | $2.10 | -5.4% |
Orora (ORA) | Jarden | Overweight | Buy | $2.40 | 8.1% |
Pro Medicus (PME) | Wilsons | Market-Weight | Overweight | $297.00 | 5.1% |
Syrah Resources (SYR) | UBS | Neutral | Buy | $0.30 | 20.0% |
Temple & Webster Group (TPW) | UBS | Sell | Neutral | $15.50 | -15.7% |
Temple & Webster Group (TPW) | Ord Minnett | Sell | Hold | $13.15 | -28.5% |
Westpac Banking Corporation (WBC) | Jarden | Underweight | Neutral | $31.20 | -6.3% |
Westpac Banking Corporation (WBC) | Ord Minnett | Lighten | Hold | $27.00 | -18.9% |
Biggest broker price target changes since last update. Price Target Upside/Downside (“PT Upside%”) values in the last column are based on closing prices on most recent session's close.
Rating INITIATED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Firefly Metals (FFM) | BMO Capital Markets | Buy | $1.75 | 72.4% | |
SPC Global Holdings (SPG) | Ord Minnett | Buy | $1.00 | 22.0% |
Biggest broker price target changes since last update. Price Target Upside/Downside (“PT Upside%”) values in the last column are based on closing prices on most recent session's close.
Price Target BIGGEST CHANGE
Company | Broker | Rating | New PT | Old PT | PT Change% | PT Upside% |
|---|---|---|---|---|---|---|
Pro Medicus (PME) | JP Morgan | Neutral | $282.00 | $130.00 | 116.9% | -0.2% |
Bravura Solutions (BVS) | Shaw and Partners | Buy | $2.90 | $1.70 | 70.6% | 4.7% |
Temple & Webster Group (TPW) | Citi | Buy | $21.10 | $13.50 | 56.3% | 14.7% |
Temple & Webster Group (TPW) | Morgan Stanley | Overweight | $18.50 | $13.15 | 40.7% | 0.6% |
The A2 Milk Company (A2M) | Macquarie | Outperform | $7.85 | $5.70 | 37.7% | 10.3% |
Audinate Group (AD8) | Jefferies | Buy | $12.00 | $9.00 | 33.3% | 25.1% |
Temple & Webster Group (TPW) | Jarden | Buy | $18.65 | $14.01 | 33.1% | 1.4% |
Temple & Webster Group (TPW) | UBS | Sell | $15.50 | $11.80 | 31.4% | -15.7% |
Temple & Webster Group (TPW) | Macquarie | Outperform | $17.60 | $13.55 | 29.9% | -4.3% |
SG Fleet Group (SGH) | Goldman Sachs | Buy | $59.30 | $45.90 | 29.2% | 8.9% |
Temple & Webster Group (TPW) | Bell Potter | Hold | $15.60 | $12.20 | 27.9% | -15.2% |
Pro Medicus (PME) | Bell Potter | Buy | $330.00 | $260.00 | 26.9% | 16.8% |
Ora Banda Mining (OBM) | Canaccord Genuity | Buy | $1.05 | $0.85 | 23.5% | 8.8% |
Audinate Group (AD8) | Morgan Stanley | Overweight | $11.00 | $9.00 | 22.2% | 14.7% |
The A2 Milk Company (A2M) | Bell Potter | Hold | $7.25 | $6.00 | 20.8% | 1.8% |
Bluescope Steel (BSL) | JP Morgan | Neutral | $25.00 | $21.00 | 19.0% | -1.0% |
Bluescope Steel (BSL) | Citi | Buy | $28.50 | $24.00 | 18.8% | 12.9% |
Bluescope Steel (BSL) | UBS | Buy | $28.50 | $24.00 | 18.8% | 12.9% |
Temple & Webster Group (TPW) | RBC Capital Markets | Outperform | $19.00 | $16.00 | 18.8% | 3.3% |
Mirvac Group (MGR) | Macquarie | Outperform | $2.56 | $2.17 | 18.0% | 15.3% |
Computershare (CPU) | Morgan Stanley | Equal-Weight | $36.60 | $31.10 | 17.7% | -14.8% |
GQG Partners (GQG) | Morgans | Add | $2.85 | $2.45 | 16.3% | 13.1% |
Newmont Corporation (NEM) | CLSA | Hold | $66.55 | $57.40 | 15.9% | -9.4% |
The A2 Milk Company (A2M) | Morgans | Hold | $6.87 | $5.95 | 15.5% | -3.5% |
Bluescope Steel (BSL) | Macquarie | Outperform | $28.70 | $24.90 | 15.3% | 13.7% |
Temple & Webster Group (TPW) | Ord Minnett | Sell | $13.15 | $11.50 | 14.3% | -28.5% |
Bluescope Steel (BSL) | RBC Capital Markets | Outperform | $27.25 | $24.00 | 13.5% | 7.9% |
Audinate Group (AD8) | Macquarie | Neutral | $8.70 | $7.70 | 13.0% | -9.3% |
Iperionx (IPX) | Bell Potter | Buy | $5.90 | $5.25 | 12.4% | 34.1% |
The A2 Milk Company (A2M) | Citi | Reduce | $8.20 | $7.33 | 11.9% | 15.2% |
Chalice Mining (CHN) | Bell Potter | Buy | $5.75 | $5.15 | 11.7% | 289.8% |
Pro Medicus (PME) | Morgans | Hold | $250.00 | $225.00 | 11.1% | -11.5% |
Pro Medicus (PME) | Citi | Sell | $165.00 | $150.00 | 10.0% | -41.6% |
Lotus Resources (LOT) | Bell Potter | Buy | $0.45 | $0.50 | -10.0% | 125.0% |
Bendigo and Adelaide Bank (BEN) | Morgan Stanley | Equal-Weight | $10.70 | $12.00 | -10.8% | -5.9% |
Graincorp (GNC) | Macquarie | Outperform | $8.76 | $9.85 | -11.1% | 24.8% |
New Hope Corporation (NHC) | Macquarie | Outperform | $5.50 | $6.20 | -11.3% | 23.6% |
Bendigo and Adelaide Bank (BEN) | JP Morgan | Neutral | $10.70 | $12.10 | -11.6% | -5.9% |
Graincorp (GNC) | CLSA | Outperform | $9.50 | $10.75 | -11.6% | 35.3% |
Orora (ORA) | Macquarie | Outperform | $2.50 | $2.84 | -12.0% | 12.6% |
Orora (ORA) | Citi | Neutral | $2.40 | $2.80 | -14.3% | 8.1% |
Orora (ORA) | Morgans | Hold | $2.15 | $2.60 | -17.3% | -3.2% |
Civmec (CVL) | Bell Potter | Buy | $1.40 | $1.70 | -17.6% | 38.6% |
Graincorp (GNC) | Bell Potter | Hold | $7.54 | $9.25 | -18.5% | 7.4% |
Cochlear (COH) | Wilsons | Market-Weight | $280.00 | $345.00 | -18.8% | 1.8% |
Civmec (CVL) | Morgans | Hold | $1.10 | $1.40 | -21.4% | 8.9% |
Orora (ORA) | Jefferies | Hold | $2.10 | $3.00 | -30.0% | -5.4% |
Playside Studios (PLY) | Shaw and Partners | Buy | $0.50 | $0.90 | -44.4% | 104.1% |
Talga Group (TLG) | UBS | Buy | $0.80 | $1.70 | -52.9% | 75.8% |
Syrah Resources (SYR) | UBS | Neutral | $0.30 | $0.80 | -62.5% | 20.0% |
Biggest broker price target changes since last update. Price Target Upside/Downside (“PT Upside%”) values in the last column are based on closing prices as on most recent session's close.
How to read broker recommendations 🔎
Typically, there are two major components of a broker’s view:
Rating: A call to action, usually along the lines of buy, hold, or sell, but depending on the broker’s ratings system, can be somewhere in between (e.g., accumulate or add is typically between a hold and a buy).
Price target (PT): The price at which the broker expects the stock will be trading at some point in the future, generally within the next 12 months.
