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%.
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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool Australia has recommended Cochlear Ltd., Crown Resorts Limited, and Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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