Goldman Sachs has been running the rule over a number of ASX 200 stocks this week.
Two that have copped downgrades on Thursday are listed below. Here's what the broker is saying about them:
Computershare Ltd (ASX: CPU)
Goldman Sachs thinks that this stock transfer company could be fairly priced now.
According to a note, the broker has downgraded the ASX 200 stock to a neutral rating with an improved price target of $35.50. This implies modest potential upside of 4.5% for investors from where its shares currently trade.
Goldman revealed that it made the move on valuation grounds following some strong share price gains. It explains:
CPU has had a strong share price run benefiting from a supportive macro backdrop driven by a) Yield expectations and b) A strong US dollar. We MTM our valuation reflecting the strengthening USD to AUD alongside small earnings changes. (accounting for FX impacts into outer years, offset by MI income upgrades and small changes to divisional earnings/ margins). As a result, our 12-mth PT increases to $35.50; with CPU now trading at close to ~17x FY25 earnings based on current USD/AUD FX, which we think is more fairly priced vs. how CPU has traded historically, we therefore downgrade CPU to Neutral. We note that our GS macro team forecasts a strengthening of the AUD through CY26.
Origin Energy Ltd (ASX: ORG)
Another ASX 200 stock that has been downgraded by Goldman Sachs is energy giant Origin Energy.
Once again, the broker made the move on valuation grounds after some strong gains in recent times.
Goldman has downgraded Origin Energy's shares to a neutral rating (from buy) with a slightly improved price target of $10.40. This implies potential downside of 7% for investors from current levels.
While positive on the company, Goldman feels that Origin Energy's shares are fully valued now. Particularly given that it feels there are risks to consensus estimates from higher tax payments. The broker explains:
We downgrade ORG to Neutral (from Buy) on valuation with our revised A$10.40/sh SOTP target price implying 7% downside, partly offset by a 5% dividend yield. ORG remains well positioned to benefit from Australia's energy transition with the NEM's largest flexible gas generation fleet, strong cash flow from APLNG, and potential upside through Octopus, though we consider the stock fully valued after recent strong performance with risk for negative consensus valuation revisions on higher cash tax payments in FY25.
