ASX Broker Moves: Upgrades for Appen, ARB Corporation, Brickworks, Pilbara Minerals vs Downgrades for Beach Energy, Dropsuite, Transurban
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: Appen (APX), Brickworks (BKW), BWP Trust (BWP), Nufarm (NUF), News Corporation (NWS), Pilbara Minerals (PLS), Pepper Money (PPM), Platinum Asset Management (PTM), REA (REA), Steadfast (SDF).
- Downgrades: Beach Energy (BPT), Dropsuite (DSE), Emerald Resources (EMR), McMillan Shakespeare (MMS), Monadelphous (MND), Nine Entertainment (NEC), OOH!Media (OML), Reliance Worldwide (RWC), Transurban (TCL).
- Target price biggest increases: Sigma Healthcare (SIG), Bluebet (BBT), Brambles (BXB), Southern Cross Media Group (SXL), Computershare (CPU).
- Target price biggest cuts: Frontier Digital Ventures (FDV), Droneshield (DRO), 29METALS (29M), Resolute Mining (RSG), Patriot Battery Metals (PMT), Ramsay Health Care (RHC).
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 the last update on Monday.
You will find the full list of broker moves in tonight's edition of Evening Wrap.
Broker Views Snippets
UBS on News Corporation (ASX: NWS) ⬆️: "Whilst the stock has had strong recent share price performance, there continues to be a significant valuation gap to our FCF ["free cash flow"] yield vs. peers based SOTP ["sum of the parts"] relative to the spot share price. Nonetheless, even if we were to put this latent value opportunity to the side, the company still appears attractive on a topdown group level basis." UPGRADE TO BUY.
Goldman Sachs on Pilbara Minerals (ASX: PLS) ⬆️: "We now include the Colina project in our estimates, which we see as marginally accretive to our NAV...we note our global mining team’s feedback from a trip to the Brazil Lithium Valley highlighted a more constructive view of the potential in the Minas Gerais region. Combined we see the Colina development and Pilgangoora expansion driving PLS production to ~2.1Mtpa spodumene (~1.85Mtpa SC6) at a group combined unit cost of ~US$600/t SC6" UPGRADE TO NEUTRAL (rating was reinstated at Neutral versus previous rating of Sell).
Goldman Sachs on Steadfast Group (ASX: SDF) ⬆️: "SDF trade[s] at 17.7x on 1-year forward consensus P/E ["price to earnings ratio"]...relatively cheap vs global peers, which face similar rate dynamics and below mid cycle multiples, giving us some comfort on downside risk. SDF offer[s] defensive earnings streams (& EPS ["earnings per share"] growth), which should support valuation / share price." UPGRADE TO BUY.
Bell Potter on McMillan Shakespeare (ASX: MMS) ⬇️: "MMS is cycling a difficult comp with fading support from carry over revenue. We see emerging risks to the downside, predicated on 1) negative volume momentum, segment exposure and a reversion in EV sales back to long-term trend (FY23/24 presented material growth); and 2) margin disappointment." DOWNGRADE TO HOLD.
Morgan Stanley on Generation Development Group (ASX: GDG) 🆕: "The gov't is looking to pass legislation to increase the tax rate on super. The Senate will vote on the bill on Feb 6. If passed, we would expect a step-change in growth for Investment Bonds over the medium term and material upside earnings risk for GDG (GDG winning >50% of industry flows)." INITIATED AT OVERWEIGHT.
Macquarie on Sigma Healthcare (ASX: SIG) ⬆️: "CWG is a solid business, and we expect SIG to trade at a premium given quality and growth characteristics. However, our bullish earnings forecasts still suggest downside to the current share price. We expect price discovery post-implementation." PRICE TARGET RAISED TO $2.68 FROM $1.00.
Rating UPGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Australian Finance Group (AFG) | Citi | Buy | Neutral | $1.85 | 6.6% |
Appen (APX) | Ord Minnett | Buy | Accumulate | $3.30 | 18.3% |
ARB Corporation (ARB) | Jefferies | Hold | Underperform | $35.00 | -5.4% |
Brickworks (BKW) | UBS | Buy | Neutral | $30.50 | 14.1% |
BWP Trust (BWP) | Citi | Neutral | Sell | $3.40 | -2.9% |
BWP Trust (BWP) | UBS | Buy | $4.05 | 15.7% | |
Nufarm (NUF) | Bell Potter | Buy | Hold | $4.35 | 12.4% |
News Corporation (NWS) | UBS | Buy | Neutral | $64.50 | 14.6% |
Pilbara Minerals (PLS) | CICC | Neutral | Underperform | $2.40 | 3.0% |
Pilbara Minerals (PLS) | Goldman Sachs | Neutral | Sell | $2.10 | -9.9% |
Pepper Money (PPM) | Citi | Buy | Neutral | $1.55 | 7.6% |
Platinum Asset Management (PTM) | Bell Potter | Hold | Sell | $0.70 | 1.4% |
REA Group (REA) | CLSA | Outperform | Hold | $283.00 | 11.0% |
Steadfast Group (SDF) | Goldman Sachs | Buy | Neutral | $6.50 | 10.9% |
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 DOWNGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Beach Energy (BPT) | JP Morgan | Neutral | Overweight | $1.55 | 7.6% |
Beach Energy (BPT) | Morgans | Hold | Add | $1.55 | 7.6% |
Beach Energy (BPT) | Ord Minnett | Hold | Buy | $1.75 | 21.5% |
Dropsuite (DSE) | Shaw and Partners | Hold | Buy | $5.90 | 2.6% |
Emerald Resources (EMR) | Ord Minnett | Sell | Hold | $3.50 | -21.0% |
McMillan Shakespeare (MMS) | Bell Potter | Hold | Buy | $15.80 | 2.5% |
Monadelphous Group (MND) | Citi | Neutral | Buy | $16.30 | 5.4% |
Nine Entertainment (NEC) | UBS | Neutral | Buy | $1.45 | 11.5% |
OOH!Media (OML) | UBS | Neutral | Buy | $1.25 | 5.0% |
Reliance Worldwide (RWC) | UBS | Neutral | Buy | $5.85 | 12.1% |
Transurban Group (TCL) | Citi | Neutral | Buy | $13.80 | 4.1% |
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% |
|---|---|---|---|---|---|
Bellevue Gold (BGL) | Jarden | Underweight | $1.00 | -18.0% | |
DigiCo REIT (DGT) | Macquarie | Outperform | $5.33 | 16.9% | |
DUG Technology (DUG) | Euroz Hartleys | Buy | $2.19 | 101.8% | |
Generation Development (GDG) | Morgan Stanley | Overweight | $4.90 | 5.4% | |
Galan Lithium (GLN) | Euroz Hartleys | Buy | $0.20 | 66.7% | |
Macquarie Technology (MAQ) | Jefferies | Hold | $81.70 | -1.2% | |
Vysarn (VYS) | Morgans | Buy | $0.55 | 17.0% |
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% |
|---|---|---|---|---|---|---|
Sigma Healthcare (SIG) | Macquarie | Underperform | $2.68 | $1.00 | 168.0% | -5.3% |
REA Group (REA) | CLSA | Outperform | $283.00 | $217.00 | 30.4% | 11.0% |
News Corporation (NWS) | UBS | Buy | $64.50 | $51.00 | 26.5% | 14.6% |
Dropsuite (DSE) | Shaw and Partners | Hold | $5.90 | $4.80 | 22.9% | 2.6% |
Bluebet (BBT) | Ord Minnett | Buy | $0.46 | $0.38 | 21.1% | 19.5% |
Platinum Asset Management (PTM) | Bell Potter | Hold | $0.70 | $0.59 | 18.6% | 1.4% |
Appen (APX) | Ord Minnett | Buy | $3.30 | $2.80 | 17.9% | 18.3% |
Brambles (BXB) | UBS | Buy | $22.50 | $19.10 | 17.8% | 14.7% |
Southern Cross Media (SXL) | UBS | Neutral | $0.64 | $0.56 | 14.3% | 4.1% |
Computershare (CPU) | Morgan Stanley | Equal-Weight | $31.10 | $27.70 | 12.3% | -11.7% |
Australian Finance Group (AFG) | Citi | Buy | $1.85 | $1.65 | 12.1% | 6.6% |
Pinnacle Investment Management (PNI) | UBS | Neutral | $25.20 | $22.50 | 12.0% | -2.6% |
ARN Media (A1N) | UBS | Sell | $0.57 | $0.51 | 11.8% | -12.3% |
Resimac Group (RMC) | Citi | Neutral | $1.00 | $0.90 | 11.1% | -1.5% |
News Corporation (NWS) | Goldman Sachs | Buy | $61.00 | $55.00 | 10.9% | 8.4% |
Wesfarmers (WES) | UBS | Neutral | $76.00 | $69.00 | 10.1% | -1.4% |
REA Group (REA) | UBS | Buy | $294.00 | $268.00 | 9.7% | 15.3% |
REA Group (REA) | Bell Potter | Buy | $281.00 | $258.00 | 8.9% | 10.2% |
Pro Medicus (PME) | Goldman Sachs | Buy | $310.00 | $285.00 | 8.8% | 7.6% |
REA Group (REA) | Ord Minnett | Hold | $260.00 | $240.00 | 8.3% | 2.0% |
Pinnacle Investment Management (PNI) | Ord Minnett | Buy | $28.00 | $26.00 | 7.7% | 8.2% |
Findi (FND) | Ord Minnett | Buy | $8.95 | $8.32 | 7.6% | 96.3% |
Seven West Media (SWM) | UBS | Sell | $0.15 | $0.14 | 7.1% | -6.3% |
Aristocrat Leisure (ALL) | Macquarie | Outperform | $80.00 | $75.00 | 6.7% | 6.9% |
Betmakers Technology Group (BET) | Ord Minnett | Buy | $0.17 | $0.16 | 6.3% | 47.8% |
REA Group (REA) | JP Morgan | Overweight | $260.00 | $245.00 | 6.1% | 2.0% |
REA Group (REA) | Jarden | Underweight | $210.00 | $198.00 | 6.1% | -17.6% |
Westgold Resources (WGX) | Argonaut Securities | Buy | $5.70 | $5.40 | 5.6% | 127.1% |
Resmed Inc (RMD) | Morgans | Add | $43.60 | $41.33 | 5.5% | 12.7% |
News Corporation (NWS) | UBS | Buy | $68.00 | $64.50 | 5.4% | 20.8% |
Silex Systems (SLX) | Canaccord Genuity | Buy | $6.52 | $6.21 | 5.0% | 6.0% |
Beach Energy (BPT) | Ord Minnett | Hold | $1.75 | $1.85 | -5.4% | 21.5% |
Nextdc (NXT) | Citi | Buy | $18.70 | $20.00 | -6.5% | 23.5% |
Johns Lyng Group (JLG) | Bell Potter | Hold | $4.10 | $4.40 | -6.8% | 12.0% |
Reliance Worldwide (RWC) | UBS | Neutral | $5.85 | $6.35 | -7.9% | 12.1% |
Close The Loop (CLG) | Shaw and Partners | Hold | $0.50 | $0.55 | -9.1% | 316.7% |
Mitchell Services (MSV) | Morgans | Buy | $0.50 | $0.55 | -9.1% | 47.1% |
Westgold Resources (WGX) | Canaccord Genuity | Buy | $4.25 | $4.70 | -9.6% | 69.3% |
Predictive Discovery (PDI) | Ord Minnett | Buy | $0.40 | $0.45 | -11.1% | 15.9% |
Beach Energy (BPT) | Morgans | Hold | $1.55 | $1.75 | -11.4% | 7.6% |
Beach Energy (BPT) | Citi | Sell | $1.15 | $1.30 | -11.5% | -20.1% |
Nine Entertainment (NEC) | UBS | Neutral | $1.45 | $1.65 | -12.1% | 11.5% |
Pilbara Minerals (PLS) | Goldman Sachs | Neutral | $2.10 | $2.40 | -12.5% | -9.9% |
Westgold Resources (WGX) | Macquarie | Outperform | $3.20 | $3.70 | -13.5% | 27.5% |
Audinate Group (AD8) | Morgan Stanley | Overweight | $9.00 | $10.50 | -14.3% | 29.5% |
Fluence Corporation (FLC) | Bell Potter | Hold | $0.09 | $0.10 | -15.0% | 23.2% |
Westgold Resources (WGX) | RBC Capital Markets | Outperform | $3.40 | $4.00 | -15.0% | 35.5% |
Vitrafy Life Sciences (VFY) | Bell Potter | Buy | $1.99 | $2.36 | -15.7% | 31.4% |
Ramsay Health Care (RHC) | Macquarie | Neutral | $35.90 | $42.75 | -16.0% | 6.8% |
Aeris Resources (AIS) | Ord Minnett | Hold | $0.23 | $0.28 | -17.9% | 43.8% |
Comet Ridge (COI) | Bell Potter | Buy | $0.21 | $0.26 | -19.2% | 55.6% |
Frontier Digital Ventures (FDV) | Morgans | Add | $0.49 | $0.61 | -19.7% | 100.0% |
Patriot Battery Metals (PMT) | Macquarie | Outperform | $0.56 | $0.70 | -20.0% | 64.7% |
Resolute Mining (RSG) | Ord Minnett | Hold | $0.40 | $0.50 | -20.0% | 11.1% |
29METALS (29M) | Canaccord Genuity | Sell | $0.16 | $0.21 | -23.8% | -22.0% |
McMillan Shakespeare (MMS) | Bell Potter | Hold | $15.80 | $21.00 | -24.8% | 2.5% |
Droneshield (DRO) | Shaw and Partners | Buy | $0.90 | $1.20 | -25.0% | 38.5% |
Frontier Digital Ventures (FDV) | Bell Potter | Buy | $0.52 | $0.70 | -25.7% | 112.2% |
OOH!Media (OML) | UBS | Neutral | $1.25 | $1.85 | -32.4% | 5.0% |
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.
