Home / Asset Allocation / 2 Broker upgrades and downgrades

2 Broker upgrades and downgrades

Asset Allocation

Broker upgrades 24-28 August 2020

Redbubble (ASX:RBL) –   Morgans has upgraded its recommendation to Add from Reduce. That’s effectively a double ratings upgrade with a target price of 433c up from 54c.

A 700% increase in target price. The massive upgrade comes on the back of the company’s recent profit result. The result reinforced continuing strong demand a expanding growth rates since the end of FY20.

It makes for an already impressive 4QFY20. Redbubble is capital light and in the right sector to capture further upside potential.  

  • Suncorp (ASX:SUN) – Credit Suisse has upgraded to Neutral from Underperform recommendation with a target price of 995c.

    The upgrade comes on the back of a better than expected profit result together with a generous 10c dividend.

    Brokers across the board had factored in a more dire outlook with shrinking margins. Things weren’t as bad as first thought.

    As a result, the broker has revised up its forecasts and says FY21 “is commencing in better shape than previously anticipated and upgrades to Neutral from Underperform”.

    Stockland Group (ASX:SGP) – Credit Suisse has downgraded its rating from Outperform to Neutral with a target price is 393c.

    While the broker has downgraded, it is still relatively positive on stock and notes the FY20 results were better than it had expected.

    “Upside potential stems from the commercial pipeline” with spare capacity to fund incremental expenditure on new developments via debt.

    The reason for the downgrade was based more so from a valuation perspective.

    SGP is considered by the broker now as fully valued.

    Bingo Industries (ASX:BIN) – Credit Suisse has downgraded its recommendation to Neutral from Outperform with a target price of 251c.

    Whilst the broker agrees that results were in line with its expectations and management has indicated growth beyond FY21, the broker is erring on the side of caution.

    It would rather await more evidence of demand recovery.

    As a result, it has lowered FY21 estimates by -8% to take in to consideration lower contributions from collections and lower margin assumptions.




    Print Article

    Related
    Higher inflation, recession more likely: Franklin Templeton

    Late July news of the Federal Reserve (Fed) increasing interest rates another 0.75% and a second negative quarter of economic growth (GDP) has created an uncertain environment for investors going forward. Adding to these concerns is China’s economic slowdown and Europe’s energy shock.  Stephen Dover, Chief Market Strategist, at the Franklin Templeton Investment Institute presents…

    Stephen Dover | 15th Aug 2022 | More
    Jones looks to shorten exam, improve ethics code

    Once the advice review is completed, the minister has asked Treasury to look at updating the ethics code and assessing the viability of a shortened adviser exam.

    Tahn Sharpe | 15th Aug 2022 | More
    AZ NGA dives into supply chain with Virtual Business Partners tie-up

    The Italian-backed group has teamed up with one of AMP’s largest advice businesses to take a major stake in the back-office services provider. It’s the first time AZ NGA has ventured beyond advice and accounting investment.

    Tahn Sharpe | 15th Aug 2022 | More
    Popular
    1
    Advisers urged to tread carefully with ‘wholesale investor’ status
    Staff Writer | 28th Jul 2022 | More
    2
    Top hedge fund award goes to L1 Capital
    Greg Bright | 13th Dec 2021 | More
    3
    MAX Award winners and the new world outside
    Greg Bright | 13th Jun 2022 | More
    4
    INDepth with Andrew Lockhart from Metrics Credit Partners
    The Inside Adviser | 30th Jun 2022 | More