Upgrades and Downgrades: Pro Medicus, Treasury Wine and tech stocks
Market Index provides regular updates for the latest broker ratings for ASX companies.
Source: iStock
Mentioned
KEY POINTS
- Pro Medicus FY22 earnings were in-line with expectations but downgrade due to valuation
- Citi warns that inflation could weigh on both customer demand and margins for Treasury Wine
- Xero and Appen downgraded to reflect near-term earnings headwinds
Market Index provides regular updates for the latest broker ratings for ASX companies.
Upgrades
Morgans upgrades to Hold from Reduce with $76.90 target price
Broker notes the sharp -4% selloff on FY22 results even though the business posted top-line growth across all segments
Credit Suisse upgrades to Outperform from Neutral with $90 target price
Blackmores shares tanked -10% on Thursday after posting its FY22 results. Credit Suisse said the results missed expectations as a result of supply chain challenges, Chinese lockdowns and industry wide inflationary pressures. Broker believes upside risks outweighs the downside, including price hikes, cost savings and cycling through tough pandemic comparables
Downgrades
Auckland International Airport (ASX: AIA)
Citi downgrades to Sell from Neutral with $6.90 target price
FY23 guidance was well-below the investment bank's forecasts and a steep -47% miss against consensus expectations
Macquarie downgrades to Neutral from Outperform with $18.62 target price
Valuation is trading at a circa 16% premium to global peers. While defensive characteristics remain attractive, share price is trading close to Macquarie targets
Citi downgrades to Sell from Neutral with $4.40 target price (from $6.60)
The investment bank forecasts Appen's Global Services segment revenue (contributed 75% to 1H22 revenue) to fall -10% in the second-half as large customers such as Facebook and Google experience a slowdown in ad spend
Bell Potter downgrades to Hold from Buy with $55 target price
FY22 earnings were in-line with market expectations. "Growth of cloud-based deployments for major healthcare IT projects is a long-term thematic that seems certain to drive new business wins," the broker notes. Downgrade based on recent movements in share price
Citi downgrades to Neutral from Buy with $13.50 target price
The investment bank warned that inflationary pressures could take a toll on both consumer demand and margins. Earnings expected to skew towards premium and luxury products. Luxury inventory expected to bear lower yield and higher costs in FY23
Macquarie downgrades to Underperform from Neutral with $70 target price (from $80)
The broker warns of further downside risks stemming from a slowdown in international markets. FY23-24 earnings were downgraded by -33% and -25% respectively
