Big brokers continue to update their price targets following quarterly reporting season. These 3 S&P/ASX 200 Index (ASX: XJO) shares have received multiple re-ratings and commentary updates from brokers.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Morgan Stanley lowered its ANZ share price target from $20.00 to $19.40 and retains an overweight rating. It blames lower than expected cash profit reported in FY20 results. However, the broker notes that the company is managing the crisis well and sees a recovery in earnings in FY21.
Credit Suisse retained its outperform rating and price target of $26.20. It expects that the worst of the COVID-19 pandemic induced risks are behind the sector and that profit growth is not out of the question for 1H21 earnings.
Similarly, Macquarie retained its outperform rating on ANZ and raised its share price target from $18.50 to $20.00. It sees continued improvement in credit outlook on low interest rates and continued federal government stimulus measures.
UBS retained a buy rating with a price target of $21.00. It notes that ANZ's Tier 1 capital was well ahead of expectations and further stimulus should support earnings going forward.
Fortescue Metals Group Limited (ASX: FMG)
Credit Suisse retained a neutral rating on the Fortescue share price and a $16.50 price target. There was no change to rating or target after reviewing its first quarter production report. However, the broker notes that the company had a strong start to FY21. Credit Suisse was the only big broker that maintained a neutral tone on Fortescue.
Macquarie retained an outperform rating on the Fortescue share price and retains its $19.50 price target. It notes that first quarter production was ahead of expectations in all areas and that strong earnings growth should continue on higher iron ore prices.
Likewise, Citi retained its buy rating with a $18.50 price target. It remains confident in management's ability to extract maximum value out of the current high iron ore price. It also noted its high dividend yield as impressive.
JB Hi-Fi Ltd (ASX: JBH)
The JB Hi-Fi received a series of share price upgrades from big brokers. This included Citi upgrading its rating from sell to neutral and raised its share price target from $44.80 to $49.30. It highlights that the company has managed the Melbourne lockdown situation better than most competitors and is pleased with solid online sales growth.
Macquarie raised its JB Hi-Fi share price target from $53.70 to $54.90 and retains its outperform rating. The broker is impressed with the company's trading update and anticipates strong sales performance through the Christmas period.
UBS raised its JB Hi-Fi share price target from $47.60 to $47.80 and retains a neutral rating. It considers the company a pick in the retail sector and expects the strong performance to continue. However, given its share price run, there could be little upside.
