Upgrades and Downgrades: Kogan, Pilbara Minerals, Rio Tinto and more

Upgrades

Ansell (ASX: ANN)

• Credit Suisse upgrades to Neutral from Underperform with $25.20 target price

• FY22 earnings were in-line with Ansell's previous guidance range and ahead of consensus expectations. Ansell expects FY23 EPS to be in the range of 115 cents to 135 cents, down from 138.6 cents in FY21. Unless the stock posts something out of left field, Credit Suisse believes bad news has mostly been priced in

Endeavour Group (ASX: EDV)

• Ord Minnett upgrades to Buy from Accumulate with $8.50 target price

• The broker blames Tuesday's share price plummet on valuation, with Endeavour trading at a price-to-earnings of around 27 times. The drop has reset expectations and expects liquor margin concerns to be offset by hotels performance

Kogan.com (ASX: KGN)

• Credit Suisse upgrades to Neutral from Outperform with $3.66 target price

• The investment bank expects moderating cost pressures and prices hikes to support a small profit in FY23. Notes that Kogan managed to grow its cash position to $31.2m from $12.8m at end of FY21

Downgrades

Adbri (ASX: ABC)

• Macquarie downgrades to Neutral from Outperform with $2.15 target price

• Analysts note that the stock's valuation is trading well-below historical multiples but doesn't see any catalysts that could inspire a re-rating. Weather conditions remain a key headwind moving forward and cost controls in FY22 were not enough to offset inflation

Alumina (ASX: AWC)

• Citi downgrades to Neutral from Buy with $1.85 target price

• European gas crisis expected to drive volatility in near-term alumina prices. The investment bank expects a volatile second-half of 2022, possibly an improved FY23

Nanosonics (ASX: NAN)

• Morgans downgrades to Hold from Add with $4.87 target price

• FY22 earnings were in-line with consensus expectations. The broker flagged the 91% increase in inventory to $22.6m as Nanosonics pivots to a direct sales model. Nanosonics is targeting FY23 revenue growth of 20-25% with gross margins between 75-76% from 76.4%

New Hope (ASX: NHC)

• Citi downgrades to Sell from Neutral with $3.00 target price

• The investment bank acknowledged the structural tailwinds in place for coal prices but prefers Whitehaven for coal exposure. Citi also notes that New Hope shares have rallied almost 100% in six months

Pilbara Minerals (ASX: PLS)

• Credit Suisse downgrades to Underperform from Neutral with $2.30 target price

• FY22 earnings missed consensus expectations, which was the primary reason for the rating downgrade. The investment bank acknowledged that lithium prices remain supportive in the near-term and Pilbara Minerals' earnings power could see a maiden dividend in FY23

Rio Tinto (ASX: RIO)

• Macquarie downgrades to Neutral from Outperform with $100 target price from $116

• Macquarie slashed its iron ore price forecasts by -25% to US$95 for 2022 and by -18% to US$98.75 for 2023 to reflect a weaker market outlook, especially out of China

TPG Telecom (ASX: TPG)

• Macquarie downgrades to Neutral from Outperform with $5.70 target price from $6.80

• TPG's first-half results were in-line with Macquarie expectations. Macquarie flagged consensus earnings estimates are still too high and above the company's own guidance. Future downgrades to analyst expectations could weigh on short to medium-term share price performance