ASX Upgrades and Downgrades: Spark New Zealand, Zip and coal miners

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 

Spark New Zealand (ASX: SPK)

• 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

Costa Group (ASX: CGC)

• 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

Zip (ASX: ZIP)

• 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)

Whitehaven Coal (ASX: WHC)

• Outperform rating retained - $7.30 target price

• Investment bank flagged potential weather risks, which should be immaterial compared to high spot prices