ASX upgrades and downgrades: REA, Appen and reporting season plays
Regular updates for the latest broker upgrades and downgrades for ASX companies
Source: iStock
Mentioned
KEY POINTS
- Appen downgraded to a Sell as earnings turnaround timing remains uncertain
- REA Group downgraded to Neutral amid unsurprisingly housing market slowdown
Market Index provides regular updates for the latest broker upgrades and downgrades for ASX companies.
Upgrades
Macquarie upgrades to Neutral from Underperform with $15.80 target price
A strong sales pipeline and surging US dollar to support near-term earnings. High prices for building parts could impact demand for detached housing segment in Australia
Downgrades
Bell Potter downgrades to Sell from Hold with $4.25 target price
Analysts do not expect any surprises for first-half results given pre-released earnings last week. FY23-24 forecasts do assume a rebound in digital advertising and customer spend, but the timing and extent of this turnaround remains uncertain
Bendigo & Adelaide Bank (ASX: BEN)
Macquarie downgrades to Underperform from Neutral with $10.00 target price
Analysts expect margin tailwinds to normalise and underperform relative to large cap peers such as National Bank
Macquarie downgrades to Neutral from Outperform with $3.20 target price (from $4.05)
Analysts warn of downside risks in the second-half of 2022 including adverse weather conditions in the east coast and persistently high energy costs
Morgans downgrades to Hold from Add with $1.91 target price (from $1.95)
Analyst expressed concerns that production guidance for FY23 might be lackluster
City Chic Collective (ASX: CCX)
Citi downgrades to Neutral from Buy with $2.47 target price
The investment bank warns of weaker-than-expected website traffic and lowered its FY23-24 earnings forecasts by 3%. Slower growth and ongoing valuation compression for growth stocks weakens share price outlook
Macquarie downgrades to Neutral from Outperform with $2.15 target price (from $3.30)
Analysts warn that deteriorating economic and property market conditions could weaken demand for GWA's building fixtures and fittings. FY23-24 earnings downgraded by -6% and -14% respectively
UBS downgrades to Neutral from Buy with $142.60 target price
The investment bank forecasts a 10-15% decline in house prices and expects a notable decline in property listings for major cities Sydney and Melbourne. Lower property listings expected to weigh on earnings
