The benchmark S&P/ASX 200 Index (ASX: XJO) is trending down today, currently 0.48% in the red at 7,141.4 points at the time of writing.
With the new year well underway, it’s time for the latest round of analyst updates to set the growth outlook for 2022. Macquarie is one of the first with a slew of broker notes coming out of the investment bank’s corner this week.
The broker came out with a list of 8 updates in notes to clients yesterday. Here’s a look at where the team at Macquarie see these ASX shares heading in 2022.
What does Macquarie reckon will outperform?
First off the press is Dexus Industria RIET (ASX: DXI) which analysts from Macquarie upgraded to outperform from neutral in a note today.
The listed fund, under the banner of real estate investment trust (REIT) and property giant Dexus (ASX: DXS), is worth $3.49 per share, according to Macquarie analyst Stuart McLean.
Dexus Industria REIT is trading 1.26% higher at $3.21 at the time of writing, indicating around 9% of upside potential should the broker’s thesis pan out.
The broker also gave Hub24 Ltd (ASX: HUB) an upward revision to outperform from a previous neutral rating. That’s in stark contrast to Macquarie analyst Brendan Carrig’s rating in September 2020 when the stock was tipped to underperform.
Macquarie has now rated Hub24 to outperform and underperform once each. Previously, it had held a neutral rating on two separate occasions. Interestingly, Bloomberg Intelligence reports that “investors who followed Carrig’s recommendation [on Hub24] received a 17% return in the past year, compared with a 3.6% return on the shares”.
Carrig reckons Hub24 is worth $32.40, an 18% upside potential from its current value of $27.44. Carrig’s price is also slightly lower than the consensus figure of $33.29.
Shares in Lendlease Group (ASX: LLC) are also set to outperform in 2022, according to another note from McLean. The analyst upgraded Lendlease from neutral today, assigning a $12.64 price target in the process.
This indicates an upside potential of approximately 21% relative to the current Lendlease share price, which is up 2.36% on the day.
What about the downgrades?
Curiously, the ASX shares the broker has tipped to remain stagnant relative to benchmarks and/or peers were healthcare names.
Macquarie downgraded Estia Health Ltd (ASX: EHE) from outperform to neutral, although its price target on the stock of $2.40 per share still indicates some potential value.
Analyst David Bailey has now rated Estia neutral and outperform once each in the last 18 months. When it was rated neutral, the stock gained 24% on average, whereas it gained 26% when rated as a buy.
At its current value of $2.09, the Estia Health share price has another 14% to climb before reaching Bailey’s price target.
Another downgrade from Bailey was to Integral Diagnostics Ltd (ASX: IDX) which was cut from outperform to neutral in a note today.
Integral is a specialist in providing diagnostic imaging services to medical and allied health professionals. It has a network of 45 sites and operates under a number of brand names.
Bailey had set the price target for Integral Diagnostics at $4.85 — below the consensus of $5.08. This implies there is around 18% upside potential from its price of $4.11 at the time of writing.
Also in the healthcare sector, Bailey has cut Regis Healthcare Ltd (ASX: RRL), Ramsay Healthcare Ltd (ASX: RHC), and Cochlear Ltd (ASX: COH), noting downside risks for each company’s share price in 2022.
Bailey valued Regis at $1.95 per share, Ramsay at $71.85, and Cochlear at $222.50, each below their consensus price targets.
With an aggressive selloff and reshuffling underway within the wider basket of ASX shares, it will be anyone’s guess as to which of these names will outperform the benchmark index this year.