Broker Watch

ASX Upgrades and Downgrades: Rio Tinto, Ansell and Jumbo Interactive

Mon 18 Jul 22, 1:05pm (AEST)
Iron Ore 1 Mining
Source: iStock

Stocks in article

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Key Points

  • Ansell viewed as good value given its underperformance of the S&P/ASX 200 Industrial Index
  • Brokers retain Buy ratings for Rio Tinto despite lowering price targets
  • Jumbo Interactive missed Morgan Stanley revenue expectations, earnings outlook downgraded

Market Index provides daily updates for the latest, noteworthy broker upgrades and downgrades for S&P/ASX 200 companies. 

Upgrades 

Ansell (ASX: ANN)

  • Macquarie upgraded to Outperform from Neutral - $27.85 target price

  • Earnings headwinds to persist as Ansell cycles through elevated covid sales from FY20-21. Redeeming factors include the stock trading at a massive discount to S&P/ASX 200 Industrials Index, benefits from a low Australian dollar and defensive healthcare earnings

Sims (ASX: SGM)

  • Citi upgraded to Buy from Neutral - $17.00 target price

  • Turkish steel scrap prices have fallen almost -40% since March and appear oversold. Sims shares are down -38% from April all-time highs, appears to be good value plus solid cash position and balance sheet

Unchanged

Jumbo Interactive (ASX: JIN)

  • Morgan Stanley retained Overweight rating - $16.00 target price (from $25.50)

  • Jumbo's preliminary FY22 results missed revenue expectations. FY23-24 earnings were downgraded by around -20% to reflect weaker ticket revenues

Rio Tinto (ASX: RIO)

  • Citi retained Buy rating - $120 target price (from $135)

    • June quarter results did not impress, iron ore production is expected to meet the lower end of FY22 guidance. Commodity price expectations for iron ore, aluminium and copper downgraded for 2022-23

  • Macquarie retained Outperform rating - $120 target price

    • Average iron ore prices were weaker-than-expected on top of industry wide cost pressures. FY22-23 earnings downgraded to reflect weak operating environment

  • Credit Suisse retained Outperform rating - $116 target price (from $118)

    • Iron ore shipments slightly ahead of expectations and consensus. Bullish rating retained thanks to strong balance sheet

  • Morgan Stanley retained Overweight rating - $119.50 target price

 

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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