ASX Broker Moves: Upgrades for Fortescue, Wesfarmers, Aristocrat Leisure vs Downgrades for Goodman Group, Stockland, Sigma Healthcare
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: AGL Energy (AGL), Ampol (ALD), Aristocrat Leisure (ALL), Ansell (ANN), Core Lithium (CXO), Dexus (DXS), Flight Centre (FLT), Fortescue (FMG), HMC Capital (HMC), Lendlease (LLC), Liontown Resources (LTR), Monadelphous (MND), Wesfarmers (WES).
- Downgrades: ASX (ASX), Accent Group (AX1), Charter Hall Group (CHC), Dropsuite (DSE), Goodman Group (GMG), Nanosonics (NAN), Regis Resources (RRL), Stockland (SGP), Sigma Healthcare (SIG).
- Target price biggest increases: Premier Investments (PMV), Dropsuite (DSE), Praemium (PPS), HMC Capital (HMC), Breville Group (BRG), Synlait Milk (SM1), Dexus (DXS), Netwealth Group (NWL).
- Target price biggest cuts: Carnarvon Energy (CVN), Healthco Healthcare and Wellness Reit (HCW), Coronado Global Resources (CRN), Nuix (NXL), Pilbara Minerals (PLS), Iluka Resources (ILU), Treasury Wine Estates (TWE).
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
Macquarie on AGL Energy (ASX: AGL) ⬆️: “Electricity prices are staying higher for longer in NSW, reducing the earnings pressure. Leverage remains as Vic better connects to the other states. Review of NEM ("National Electricity Market") structure likely to benefit incumbents as capacity markets emerge.” UPGRADE TO OUTPERFORM.
Goldman Sachs on Aristocrat Leisure (ASX: ALL) ⬆️: “Our positive view is predicated on our preference for high quality companies that have a track record of delivering strong and certain earnings growth...Although having traded strongly since its FY24 result, we see further upside noting that its PER discount to ‘high growth’ ASX names is below its 10Y average.” UPGRADE TO BUY.
Bell Potter on Fortescue (ASX: FMG) ⬆️: Broker notes solid operational performance in December quarter with shipments in line with expectations and unit costs below expectations. Additionally, notes tailwinds from weaker Australian dollar but concerns persist with respect to the company's energy transition spending. Dividends may increase if market conditions improve" UPGRADE TO HOLD.
Macquarie on Monadelphous Group (ASX: MND) ⬆️: “MND [is] now showing evidence of more meaningful margin improvement which supports a robust earnings outlook. MND remains a high quality contractor from risk mgt standpoint along with a strong balalnce sheet.” UPGRADE TO OUTPERFORM.
Goldman Sachs on Wesfarmers (ASX: WES) ⬆️: “After a strong year of stock performance in CY24, we continue to see new drivers of growth in WES to drive both earnings and valuation upside...s, WES will have the highest F24-27 EPS CAGR of 10% in our top 5 consumer coverage (vs WOW, COL, EDV, JBH) while ROIC will expand by 6pts to 25% vs peers flat.” UPGRADE TO BUY.
UBS on DigiCo REIT (ASX: DGT) 🆕: “DigiCo is a diversified owner, operator and developer of data centres...In our view, DGT is well positioned to leverage existing assets and new sites - particularly SYD1, where current available capacity and the densification of existing space and expansion, together with new ownership and upcoming government certification has the ability to materially increase both the earnings and valuation.” INITIATED AT BUY.
Rating UPGRADED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Abacus Group (ABG) | Macquarie | Outperform | Neutral | $1.26 | 8.6% |
AGL Energy (AGL) | Macquarie | Outperform | Neutral | $12.08 | 5.7% |
Ampol (ALD) | Goldman Sachs | Buy | Neutral | $32.00 | 13.0% |
Aristocrat Leisure (ALL) | Goldman Sachs | Buy | Neutral | $78.00 | 8.6% |
Ansell (ANN) | CLSA | Outperform | Hold | $38.00 | 8.5% |
Centuria Industrial Reit (CIP) | Macquarie | Outperform | Neutral | $3.32 | 13.7% |
Centuria Capital Group (CNI) | Ord Minnett | Accumulate | Hold | $2.00 | 10.2% |
Charter Hall Retail Reit (CQR) | Macquarie | Outperform | Neutral | $3.45 | 7.5% |
Core Lithium (CXO) | Wilsons | Market-Weight | $0.10 | 12.4% | |
Dexus (DXS) | Macquarie | Outperform | Neutral | $7.74 | 10.4% |
Flight Centre Travel Group (FLT) | JP Morgan | Overweight | Neutral | $20.00 | 13.8% |
Fortescue (FMG) | Bell Potter | Hold | Sell | $17.53 | -7.2% |
Growthpoint Properties Australia (GOZ) | Macquarie | Outperform | Neutral | $2.61 | 10.1% |
HMC Capital (HMC) | Ord Minnett | Hold | Sell | $9.15 | 0.5% |
Lendlease Group (LLC) | Ord Minnett | Hold | Lighten | $6.40 | -0.8% |
Lendlease Group (LLC) | Macquarie | Outperform | Neutral | $6.98 | 8.2% |
Liontown Resources (LTR) | Jarden | Neutral | Underweight | $0.63 | -4.5% |
Monadelphous Group (MND) | Macquarie | Outperform | Neutral | $15.93 | 3.7% |
National Storage Reit (NSR) | Ord Minnett | Accumulate | Hold | $2.40 | 7.6% |
Nuix (NXL) | Moelis Australia | Buy | Hold | $6.09 | 41.3% |
Premier Investments (PMV) | Ord Minnett | Buy | Sell | $33.00 | 52.4% |
Praemium (PPS) | Ord Minnett | Accumulate | Hold | $0.90 | 7.8% |
Wesfarmers (WES) | Goldman Sachs | Buy | Neutral | $78.70 | 4.3% |
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% |
|---|---|---|---|---|---|
Ampol (ALD) | Macquarie | Neutral | Outperform | $31.00 | 9.5% |
Arena Reit. (ARF) | Macquarie | Neutral | Outperform | $3.99 | 3.1% |
ASX (ASX) | Morgan Stanley | Underweight | Equal-Weight | $55.05 | -9.2% |
Accent Group (AX1) | Citi | Neutral | Buy | $2.43 | 2.1% |
Charter Hall Group (CHC) | Macquarie | Neutral | Outperform | $15.71 | 3.6% |
Centuria Capital Group (CNI) | Macquarie | Neutral | Outperform | $1.85 | 1.9% |
Dropsuite (DSE) | Ord Minnett | Hold | Buy | $5.90 | 2.8% |
Goodman Group (GMG) | Ord Minnett | Hold | Accumulate | $39.50 | 12.9% |
Nanosonics (NAN) | Morgans | Hold | Add | $3.75 | 7.4% |
Region Group (RGN) | Macquarie | Underperform | Outperform | $2.03 | -5.6% |
Regis Resources (RRL) | Argonaut Securities | Hold | Buy | $3.50 | 18.6% |
Regis Resources (RRL) | Canaccord Genuity | Hold | Buy | $3.10 | 5.1% |
Scentre Group (SCG) | Macquarie | Neutral | Outperform | $3.37 | -6.6% |
Stockland (SGP) | Ord Minnett | Hold | Accumulate | $4.95 | -3.5% |
Stockland (SGP) | Macquarie | Underperform | Neutral | $5.15 | 0.4% |
Sigma Healthcare (SIG) | Ord Minnett | Hold | Accumulate | $2.70 | -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 INITIATED
Company | Broker | New Rating | Old Rating | Price Target | PT Upside% |
|---|---|---|---|---|---|
Bubs Australia (BUB) | Ord Minnett | Buy | $0.20 | 60.0% | |
DigiCo REIT (DGT) | UBS | Buy | $5.60 | 32.7% |
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% |
|---|---|---|---|---|---|---|
Premier Investments (PMV) | Ord Minnett | Buy | $33.00 | $20.50 | 61.0% | 52.4% |
Dropsuite (DSE) | Ord Minnett | Hold | $5.90 | $4.09 | 44.3% | 2.8% |
Praemium (PPS) | Ord Minnett | Accumulate | $0.90 | $0.63 | 42.9% | 7.8% |
HMC Capital (HMC) | Ord Minnett | Hold | $9.15 | $6.50 | 40.8% | 0.5% |
Sigma Healthcare (SIG) | Ord Minnett | Hold | $2.70 | $2.15 | 25.6% | -10.9% |
Insignia Financial (IFL) | Ord Minnett | Hold | $4.60 | $3.70 | 24.3% | 1.8% |
Breville Group (BRG) | Goldman Sachs | Buy | $40.90 | $34.20 | 19.6% | 7.1% |
Regis Resources (RRL) | Morgans | Add | $3.83 | $3.22 | 18.9% | 29.8% |
Synlait Milk (SM1) | Macquarie | Underperform | $0.44 | $0.37 | 18.9% | -20.0% |
Dexus (DXS) | Macquarie | Outperform | $7.74 | $6.52 | 18.7% | 10.4% |
Sigma Healthcare (SIG) | Jefferies | Underperform | $2.05 | $1.75 | 17.1% | -32.3% |
Netwealth Group (NWL) | Ord Minnett | Hold | $31.00 | $27.00 | 14.8% | 0.6% |
Regis Resources (RRL) | UBS | Sell | $2.40 | $2.10 | 14.3% | -18.6% |
Wesfarmers (WES) | Goldman Sachs | Buy | $78.70 | $69.50 | 13.2% | 4.3% |
JB HI-FI (JBH) | Goldman Sachs | Sell | $75.50 | $66.90 | 12.9% | -23.3% |
Ansell (ANN) | CLSA | Outperform | $38.00 | $33.75 | 12.6% | 8.5% |
Ansell (ANN) | UBS | Neutral | $36.00 | $32.00 | 12.5% | 2.8% |
EBR Systems (EBR) | Bell Potter | Buy | $2.26 | $2.01 | 12.4% | 28.0% |
Regis Resources (RRL) | Bell Potter | Buy | $3.75 | $3.35 | 11.9% | 27.1% |
AMP (AMP) | Morgan Stanley | Overweight | $1.90 | $1.70 | 11.8% | 8.0% |
Aristocrat Leisure (ALL) | Goldman Sachs | Buy | $78.00 | $70.00 | 11.4% | 8.6% |
Regis Resources (RRL) | Morgan Stanley | Equal-Weight | $2.95 | $2.65 | 11.3% | 0.0% |
Growthpoint Properties Australia (GOZ) | Macquarie | Outperform | $2.61 | $2.35 | 11.1% | 10.1% |
Netwealth Group (NWL) | UBS | Neutral | $30.75 | $28.00 | 9.8% | -0.2% |
Abacus Group (ABG) | Macquarie | Outperform | $1.26 | $1.15 | 9.6% | 8.6% |
Ampol (ALD) | Macquarie | Neutral | $31.00 | $33.75 | -8.1% | 9.5% |
Gold Road Resources (GOR) | RBC Capital Markets | Sector Perform | $2.10 | $2.30 | -8.7% | -12.5% |
Domain Australia (DHG) | Goldman Sachs | Neutral | $2.90 | $3.20 | -9.4% | 7.8% |
Coronado Global Resources (CRN) | UBS | Buy | $1.35 | $1.50 | -10.0% | 104.5% |
OOH!Media (OML) | Goldman Sachs | Neutral | $1.35 | $1.50 | -10.0% | 15.9% |
Viva Energy Group (VEA) | Macquarie | Outperform | $3.60 | $4.00 | -10.0% | 36.9% |
Region Group (RGN) | Macquarie | Underperform | $2.03 | $2.28 | -11.0% | -5.6% |
Abacus Group (ABG) | Ord Minnett | Accumulate | $1.20 | $1.35 | -11.1% | 3.4% |
Mirvac Group (MGR) | Macquarie | Outperform | $2.17 | $2.46 | -11.8% | 11.3% |
Coronado Global Resources (CRN) | Goldman Sachs | Buy | $1.05 | $1.20 | -12.5% | 59.1% |
Coventry Group (CYG) | Bell Potter | Buy | $1.40 | $1.60 | -12.5% | 32.7% |
Growthpoint Properties Australia (GOZ) | Ord Minnett | Buy | $2.60 | $3.00 | -13.3% | 9.7% |
Coronado Global Resources (CRN) | Bell Potter | Buy | $1.20 | $1.40 | -14.3% | 81.8% |
Treasury Wine Estates (TWE) | Goldman Sachs | Buy | $13.00 | $15.20 | -14.5% | 23.8% |
Iluka Resources (ILU) | Morgan Stanley | Equal-Weight | $4.90 | $5.80 | -15.5% | 6.8% |
Pilbara Minerals (PLS) | Ord Minnett | Hold | $2.50 | $3.00 | -16.7% | 9.6% |
Nuix (NXL) | Shaw and Partners | Buy | $5.70 | $7.00 | -18.6% | 32.3% |
Coronado Global Resources (CRN) | Morgans | Buy | $1.10 | $1.40 | -21.4% | 66.7% |
Coronado Global Resources (CRN) | Ord Minnett | Hold | $0.90 | $1.15 | -21.7% | 36.4% |
Healthco Healthcare and Wellness Reit (HCW) | Macquarie | Outperform | $1.02 | $1.32 | -22.7% | 11.5% |
Carnarvon Energy (CVN) | Macquarie | Outperform | $0.22 | $0.29 | -24.1% | 76.0% |
Burgundy Diamond Mines (BDM) | Bell Potter | Buy | $0.10 | $0.18 | -44.4% | 104.1% |
Biggest broker price target changes since last update. Price Target Upside/Downside (“PT Upside%”) values in the last column are based on closing prices 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.
