As the end of quarterly reporting season approaches, here are the S&P/ASX 200 Index (ASX: XJO) shares brokers are eyeing after they reported their quarterly results.
Buy rated ASX 200 shares
Champion Iron Ltd (ASX: CIA)
Champion Iron’s March quarter production has exceeded Macquarie’s expectations, with the miner producing above its nameplate capacity despite COVID-19 related interruptions.
The broker highlighted Champion’s Bloom Lake Phase II expansion project which should double its nameplate capacity to 15Mtpa upon its scheduled completion by mid-2022 and the finalisation of its Kami acquisition.
Current iron ore prices are well above Macquarie’s forecast which may translate into substantial earnings upside. The broker retained its outperform rating and increased its target price from $7.00 to $8.00. The Champion Iron share price is currently sitting around record highs of $6.82.
Credit Corp Group Ltd (ASX: CCP)
The Credit Corp share price has dipped lower after its trading update confirmed that sales volumes remain ~50% below pre-COVID levels in ANZ and the United States. Macquarie notes that there are some early indicators of a volume recovery for the receivables management business.
The broker believes Credit Corp’s dominant position in the ANZ market and growth in the United States should position it to outperform in the medium term. Despite the near-term weakness in sales, the company reiterated its earnings and dividend guidance.
Macquarie retained its outperform rating with a $34.80 target price. The Credit Corp share price was trading around the low $30s range for most of February through to early April. Its shave have shed 10% this month to $29.19.
IOOF Holdings Ltd (ASX: IFL)
IOOF’s March quarter funds under management/administration of $203.9 billion was in line with Credit Suisse estimates. The result was driven by a positive performance from the financial markets, but offset by $4 billion in outflows.
The broker comments that the outflows was worse than expected and impacted by product restructurings or departing advisors. However, the broker observed that outflows are slowing and positive momentum is building for IOOF’s platform and investment management. Credit Suisse believes there is a significant demand for advice and a large opportunity for companies such as IOOF to capitalise. An outperform rating was retained with a $5.00 target price. The current IOOF share price is sitting at $3.66.
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More reading
- Not too late to buy these small ASX mining shares for the commodities boom
- What’s happening with the IOOF (ASX:IFL) share price today?
- Credit Corp (ASX:CCP) share price on watch following market update
- Why the IOOF (ASX:IFL) share price is on watch today
- These were the best performers on the ASX 200 last week
Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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