In the good books
COCA-COLA AMATIL (CCL) was upgraded to Accumulate from Hold by Ord Minnett
Ord Minnett assesses Coca-Cola Amatil is positioned for leverage from a recovery in activity in Australasia. Cost savings should support earnings and mitigate the negative impact of volume reductions. The broker increases forecasts by 2.6% for 2020 and 6.4% for 2021 amid greater confidence in a recovery. Rating is upgraded to Accumulate from Hold and the target raised to $11 from $9.
WOOLWORTHS (WOW) was upgraded to Buy from Neutral by Citi
Citi upgrades to Buy from Neutral, raising estimates for earnings per share by 5% for FY21 and 3.5% for FY22. This reflects a rational grocery market and earnings momentum as well as appealing relative valuations. The broker assesses the sales gap over Coles (COL) is driven by the online channel and forecasts like-for-like sales growth of 11.6% in the first quarter for Woolworths. Target is raised to $44.50 from $41.20.
In the not-so-good books
STOCKLAND (SGP) was downgraded to Neutral from Outperform by Macquarie
Commercial rent collection in the September quarter was higher relative to the prior quarter, with 81% of first quarter rent collected as of October 18. Credit Suisse notes, while retail was slow, the office and industrial segments were relatively resilient. Guidance remains absent but the broker assesses Stockland is tracking below its unchanged FY21 earnings expectations. However, there is scope for rent relief coming in higher than estimated. Neutral rating retained. Target rises to $4.05 from $3.96.
SYDNEY AIRPORT HOLDINGS (SYD) was downgraded to Lighten from Hold by Ord Minnett
Passenger numbers fell -96% in September. However, Ord Minnett notes a slight improvement month on month which should accelerate as domestic borders reopen and international travel bubbles are established. The timing is heavily reliant on coronavirus cases remaining low. The broker downgrades to Lighten from Hold, given the recent bounce in the share price and the reliance on a recovery in international travel. Target is raised to $5.40 from $5.00 because of changes to forecasts for net operating receipts.
The above was compiled from reports on FNArena. The FNArena database tabulates the views of seven major Australian and international stockbrokers: Citi, Credit Suisse, Macquarie, Morgan Stanley, Morgans, Ord Minnett and UBS. Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
