Let’s take a look at which companies are taking the attention from analysts.
With the rising Covid-19 cases in China, Citi has downgraded A2 Milk’s (ASX:A2M) rating to a sell from a buy. The target price also got a trim to $4.80 from $7.02. The broker cites that due to the lockdown in a key port city, delivery delays are of concern. Adding to a fall in e-commerce prices, net profit forecasts are set to fall up to 5 per cent in the coming two financial years.
Meanwhile, Morgans has upgraded its rating for AGL Energy (ASX:AGL) to an add from a hold with its price target also getting a boost to $8.83 from $7.24. The broker believes that the market conditions in the wholesale space for electricity and gas is set to ripple into strong earnings for the company on a tight commodities market.
After news from Iluka Resources’ (ASX:ILU) board giving its tick of approval to construct a $1.2 billion refinery in WA, Credit Suisse upgraded the stock to a neutral from underperform with a raised price target of $13 from $9. The loan from the federal government has supported this move. Aside from that, the broker believes that this project is a high-risk option as the experience in the separation of rare earth elements is far and few outside of China, however Credit Suisse notes that the company’s valuation could move higher as a beneficiary of the company’s bullish view.