ASX Broker Moves: Upgrades for Baby Bunting, Resmed vs Downgrades for Computershare, Monadelphous, Beach Energy
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: Baby Bunting (BBN) and Resmed (RMD)
- Downgrades: Computershare (CPU), Monadelphous (MND) and Beach Energy (BPT)
- Target price biggest increases: Computershare (CPU), Origin Energy (ORG), HMC Capital (HMC)
- Target price biggest cuts: Premier Investments (PMV), Integrated Research (IRI) and Arafura Rare Earths (ARU)
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 in the last 24-hours.
You will find the full list of broker moves in tonight's edition of Evening Wrap.
Broker Views Snippets
Citi on Baby Bunting (ASX: BBN): "In our view, [there] are early signs that the turnaround is going to plan, and further upside may come from i) the store refurbishment program and new store formats if the company can continue to execute, ii) gross margins continuing to surprise on the upside"
Ord Minnett on Resmed (ASX: RMD): "Ord Minnett has reviewed its models for healthcare companies under its coverage to incorporate foreign exchange movements in the December quarter...resulting in changes to EPS forecasts across the sector...leads us to raise our recommendation on [the] sleep apnoea equipment supplier"
Citi on Beach Energy (ASX: BPT): "The sharp rally since the site trip we think has gone too far relative to the remaining execution risks...therefore contend there is no upside left to own BPT"
Goldman Sachs on Computershare (ASX: CPU): "CPU has had a strong share price run benefiting from a supportive macro backdrop...with CPU now trading at close to ~17x FY25 earnings based on current USD/AUD FX, which we think is more fairly priced vs. how CPU has traded historically"
Macquarie on Monadelphous (ASX: MND): "[MND's] risk/reward now fairly balanced in our view. Prior share price to EPS gap has now closed up"
Goldman Sachs on Origin Energy (ASX: ORG): "ORG remains well positioned to benefit from Australia’s energy transition...though we consider the stock fully valued after recent strong performance"
Rating UPGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Baby Bunting Group (BBN) | Citi | Buy | Neutral | $2.01 | 11.7% |
Resmed Inc (RMD) | Ord Minnett | Buy | Hold | $43.90 | 18.4% |
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) | Citi | Sell | Neutral | $1.30 | -12.5% |
Computershare (CPU) | Goldman Sachs | Neutral | Buy | $35.50 | 4.5% |
Monadelphous Group (MND) | Macquarie | Neutral | Outperform | $14.80 | 2.5% |
Origin Energy (ORG) | Goldman Sachs | Neutral | Buy | $10.40 | -7.1% |
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% |
|---|---|---|---|---|---|
DigiCo REIT (DGT) | Goldman Sachs | Accumulate | N/A | $5.80 | 31.5% |
Steadfast Group (SDF) | CLSA | Outperform | N/A | $6.60 | 14.0% |
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% |
|---|---|---|---|---|---|---|
Computershare (CPU) | Goldman Sachs | Neutral | $35.50 | $31.00 | 14.5% | 4.5% |
Origin Energy (ORG) | Citi | Buy | $12.50 | $11.00 | 13.6% | 11.7% |
HMC Capital (HMC) | Goldman Sachs | Buy | $9.86 | $8.94 | 10.3% | 6.6% |
Resmed Inc (RMD) | Ord Minnett | Buy | $43.90 | $40.05 | 9.6% | 18.4% |
Woodside Energy Group (WDS) | Citi | Sell | $23.50 | $21.50 | 9.3% | -8.8% |
Beach Energy (BPT) | Citi | Sell | $1.30 | $1.20 | 8.3% | -12.5% |
Sonic Healthcare (SHL) | Ord Minnett | Lighten | $25.45 | $23.85 | 6.7% | -8.7% |
Cochlear (COH) | Ord Minnett | Hold | $315.50 | $301.00 | 4.8% | 2.8% |
Avjennings (AVJ) | Bell Potter | Hold | $0.70 | $0.67 | 4.5% | 1.4% |
Regis Resources (RRL) | Macquarie | Outperform | $3.40 | $3.30 | 3.0% | 17.2% |
Monadelphous Group (MND) | Macquarie | Neutral | $14.80 | $14.44 | 2.5% | 2.5% |
Beach Energy (BPT) | Goldman Sachs | Sell | $1.33 | $1.30 | 2.3% | -10.4% |
James Hardie Industries (JHX) | Ord Minnett | Accumulate | $58.00 | $57.00 | 1.8% | 12.6% |
Baby Bunting Group (BBN) | Citi | Buy | $2.01 | $1.98 | 1.5% | 11.7% |
Viva Energy Group (VEA) | Goldman Sachs | Buy | $3.35 | $3.30 | 1.5% | 22.3% |
AGL Energy (AGL) | Goldman Sachs | Neutral | $11.65 | $11.50 | 1.3% | 2.1% |
Origin Energy (ORG) | Goldman Sachs | Neutral | $10.40 | $10.30 | 1.0% | -7.1% |
Fortescue (FMG) | UBS | Sell | $17.50 | $17.60 | -0.6% | -7.1% |
CSL (CSL) | Ord Minnett | Accumulate | $318.00 | $320.00 | -0.6% | 15.1% |
Deterra Royalties (DRR) | UBS | Buy | $4.90 | $4.95 | -1.0% | 21.9% |
ARB Corporation (ARB) | Citi | Buy | $49.22 | $50.00 | -1.6% | 22.8% |
Santos (STO) | Goldman Sachs | Buy | $7.75 | $7.90 | -1.9% | 8.5% |
Ramsay Health Care (RHC) | Ord Minnett | Hold | $41.45 | $42.40 | -2.2% | 19.7% |
Woodside Energy Group (WDS) | Goldman Sachs | Neutral | $25.90 | $26.90 | -3.7% | 0.5% |
Strike Energy (STX) | Goldman Sachs | Buy | $0.25 | $0.26 | -3.8% | 16.3% |
Karoon Energy (KAR) | Goldman Sachs | Buy | $2.04 | $2.15 | -5.1% | 44.7% |
South32 (S32) | UBS | Buy | $4.00 | $4.30 | -7.0% | 17.0% |
Coronado Global Resources (CRN) | Bell Potter | Buy | $1.45 | $1.60 | -9.4% | 94.6% |
Seek (SEK) | Macquarie | Outperform | $25.00 | $28.00 | -10.7% | 15.2% |
Arafura Rare Earths (ARU) | Bell Potter | Hold | $0.15 | $0.17 | -11.8% | 11.1% |
Integrated Research (IRI) | Bell Potter | Buy | $0.75 | $0.87 | -13.8% | 80.7% |
Premier Investments (PMV) | Macquarie | Neutral | $29.00 | $34.20 | -15.2% | 7.5% |
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.
