5 ASX 200 broker updates after quarterly earnings season

Afterpay Ltd (ASX: APT) and Coles Group Ltd (ASX: COL) are among 5 ASX 200 shares to receive broker updates during quarterly earnings

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Big brokers continue to update their price targets throughout the S&P/ASX 200 Index (ASX: XJO) quarterly updates. Here are five ASX 200 shares that have received broker updates amidst October quarterly earnings. 

Afterpay Ltd (ASX: APT) 

Macquarie raised its Afterpay share price target from $90.00 to $97.50 but retains a neutral rating. The broker is impressed with the September quarter trading update. However, it notes that the US result was flat, but as expected given seasonal trends. Likewise, Morgan Stanley retained its overweight rating on Afterpay and its share price target of $115. It says that the trading update was slightly better than expected. While Afterpay’s Stripe partnership is a positive which should enable increased penetration in the US market. 

Conversely, UBS retains its gloomy sell rating with a price target of $28.25. While it expects continued improvement in transaction frequency in the next quarter as consumption increases into Christmas, it cannot find a reason to amend its target. 

Coles Group Ltd (ASX: COL) 

A series of price upgrades came in for the Coles share price including: 

  • Citi raising its price target from $21.00 to $21.20 with a buy rating 
  • Credit Suisse raising its price target from $20.16 to $21.04 with an outperform rating 
  • Morgan Stanley raising its price target from $19.75 to $20.25 with an overweight rating 

All three brokers provided upbeat commentary anticipating strong demand for groceries in the December quarter. 

Galaxy Resources Limited (ASX: GXY) 

The lithium sector is getting some love from brokers following the fears that Tesla would solely source its lithium from Nevada. 

Citi raised its Galaxy Resources share price target from $1.25 to $1.40. It notes that the company is doing enough to manage lower prices and demand with its production. It sees the Altura Mining failure as a positive for lithium prices. 

Likewise, Credit Suisse raised its price target from $0.84 to $1.30. It anticipates that growth in lithium demand is on the horizon. 

Hub24 Ltd (ASX: HUB) 

The Hub24 has been a standout performer amongst ASX200 shares. However, the share price run has been backed by improving business performance and brokers have reacted positively to its recent acquisitions, earnings and growth opportunities. 

Credit Suisse upgraded its rating from underperform to neutral with a revised price target from $18.70 to $21.50. While Macquarie also raised its price target from $22.50 to $23.50. 

Super Retail Group Ltd (ASX: SUL) 

The Super Retail Group share price received a series of upgrades from multiple brokers. This includes: 

  • Citi raising its price target from $11.90 to $13.10 
  • Credit Suisse raising its price target from $11.83 to $12.21 
  • Macquarie raising its price target from $10.80 to $11.30 
  • Morgan Stanley retains its price target of $11.40 
  • UBS raising its price target from $10.70 to $11.30 

All brokers were pleased with its sales performance and sees further growth ahead. 

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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Hub24 Ltd and Super Retail Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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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