Brokers have updated their ratings across a range of high profile shares on the S&P/ASX 200 Index (ASX: XJO) this week. It's a mixed bag, so let's take a look at which ASX 200 shares were in their sights.
Afterpay Ltd (ASX: APT)
Morgan Stanley reacted positively to Afterpay's Westpac Banking Corp (ASX: WBC) partnership. It expects September quarterly merchant sales to improve to $4 billion and active users to 11.3 million. The December quarter will also likely surprise to the upside on a surge in consumer spending. As a result, Morgan Stanley raised its Afterpay share price target from $106 to $115 and retains its overweight rating.
Conversely, UBS has retained its sell rating and price target of $28.25. An almost 75% discount to today's prices!
Cochlear Ltd (ASX: COH)
Citi sees revenues declining by as much as 16% with no recovery in earnings until FY22. It retains its sell rating with a price target of $184. Likewise, UBS retains its sell rating with a target price of $175 citing lower implant revenues.
Credit Suisse raised its Cochlear share price target from $215 to $225 with a neutral rating. The broker believes its recovery is on track after reviewing first quarter sales. Likewise, Macquarie raised its price target from $236 to $241. It sees potential for improving sales to continue, particularly for developed markets.
Crown Resorts Ltd (ASX: CWN)
Credit Suisse lowered its Crown share price target from $11.10 to $10.20 while retaining an outperform rating. It blames the ongoing impact of the COVID-19 pandemic on the business but notes some signs of early recovery.
Dominos Pizza Enterprises Ltd (ASX: DMP)
Citi raised its Dominos Pizza share price target from $59.60 to $67.40 but retains its sell rating. It notes that surging sales has propped up its target price but blames the unattractive price-to-earnings (P/E) ratio for its sell rating.
Tabcorp Holdings Limited (ASX: TAH)
Credit Suisse raises the Tabcorp share price target from $4.30 to $4.40 and retains its outperform rating. The broker is impressed with its trading update and has upgraded its earnings estimates for FY22 by 5% and FY23 by 6%. Likewise, UBS also retains a buy rating and target price of $4.70.
Woolworths Group Ltd (ASX: WOW)
Citi upgrades the Woolworths share price rating from neutral to buy and raises its price target from $41.20 to $44.50. Citi is pleased with its continued earnings momentum and expects a strong December quarter performance. It increased Woolworth's earnings estimates for FY21 by 5% and FY22 by 3.5%.
