ASX Upgrades and Downgrades: Spark New Zealand, Zip and coal miners
The latest broker upgrades and downgrades for ASX companies.
Source: iStock
Mentioned
KEY POINTS
- Relatively quiet day for broker updates, mostly unchanged ratings and slight target price revisions
- Credit Suisse retained an outperform rating for coal miners as spot prices continue to exceed the brokers estimates
Market Index provides daily updates for the latest broker upgrades and downgrades for ASX companies.
Wednesday is another relatively quiet day for broker updates. Again, mostly unchanged ratings and slight revisions to price targets.
Upgrades
Credit Suisse upgrades to Outperform from Neutral - $4.90 target price
Sale of 70% stake in TowerCo will net the business NZ$900m, ahead of the investment banks expectations. A special dividend on the cards
Downgrades
Note: Ratings did not change, but price targets were downgraded
UBS retains Neutral rating - $2.85 target price (from $3.35)
Earnings forecast was downgraded in response to recent weather conditions and lower citrus and blueberry yields
UBS retains Sell rating - 45 cent target price (from 90 cents)
Termination of Sezzle acquisition viewed as a positive, but more transparency needed for the company's path to profitability
Other
Credit Suisse has updated its coal sector coverage, citing that current spot and futures pricing is well above its estimates.
Commentary and updates were provided for:
New Hope Corporation (ASX: NHC)
Outperform rating retained - $4.90 target price
Acland Project project progressing well, with potential to add $1.50 per share to valuation if it can come online by 2025 (New Hope targeting 5-7 mtpa)
Outperform rating retained - $7.30 target price
Investment bank flagged potential weather risks, which should be immaterial compared to high spot prices
