Broker Watch

ASX Upgrades and Downgrades: Iron ore and lithium miners, Computershare

Mon 11 Jul 22, 11:16am (AEST)
Mining 1 Iron Ore

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Key Points

  • Quite day for broker updates, mostly posturing price targets for macro headwinds and rising rates
  • Credit Suisse downgrades several miner price targets due to recession risks and cost inflation

Market Index provides daily updates for the latest broker upgrades and downgrades for ASX companies. 

Monday has been a relatively quiet day for broker updates, mostly unchanged ratings and posturing price targets for macroeconomic headwinds, rising interest rates and beaten up valuations.

Upgrades 

Computershare (ASX: CPU)

  • Morgans upgraded to Add from Hold - $27.53 target price (from $23.97)

  • Several upgrades for companies under 'diversified financials' sector thanks to rising bond yields

St Barbara (ASX: SBM)

  • Macquarie upgraded to Outperform from Neutral - $1.10 target price

  • June quarter result beat the broker's expectations, notably production and cash balance

Magellan Financial Group (ASX: MFG)

  • Macquarie upgrades to Neutral from Underperform - $11.50 target price (from $13.25)

  • Expects more outflows in September quarter but de-rating has reflected FUM outflows

Downgrades

Allkem (ASX: AKE)

  • Credit Suisse retains Neutral rating - $11.00 target price (from $14.70)

  • Recession risks and rising costs expose downside risks for miners, including lithium miners

Costa Group (ASX: CGC)

  • Credit Suisse downgrades to Neutral from Outperform - $2.80 target price (from $3.70)

  • FY22 earnings estimates downgraded on expectations of a weak harvest from Victoria, NSW and SA operations and a slow recovery for avocado pricing

Fortescue (ASX: FMG)

  • Credit Suisse retains Neutral rating - $17.00 target price (from $20.00)

  • Several target price downgrades for miners due to falling spot prices and cost side inflation

Medibank Private (ASX: MPL)

  • Morgans downgrades to Hold from Add - $3.43 target price

  • FY22 earnings downgraded on negative mark to market investment impacts (fluctuations of assets and liabilities)

Pilbara Minerals (ASX: PLS)

  • Credit Suisse retains Neutral rating - $2.40 target price (from $3.00)

  • Recession risks and rising costs expose downside risks for miners, including lithium miners

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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