Market wraps 28th July 2020

Morning Bell - Jessica Amir

The Aussie share market is set to gain 0.4% at the open, a nice addition to yesterday’s 0.3% gain.

It was another action-packed night with the gold price continuing to climb, U.S. equities clawing back and the Republican party unveiling parts to their COVID-19 relief plan, including a 70% wage replacement of sorts.

Companies reporting today:

  • Credit Corp (ASX:CCP) - Full year
  • G.U.D Holdings (ASX:GUD) - Full year
  • Iluka Resources (ASX:ILU) - 2Q20 Prod

Local trading ideas:

  • Bell Potter upgraded Emeco Holdings’ (ASX:EHL) buy rating and price target to $1.60, implying 62% share price growth from yesterday’s close price of $0.99. The bullish outlook comes as EHL reported solid FY20 results in line with expectations, with profit up 23%. EHL also unveiled a stronger than expected FY21 outlook for earnings.
  • Bell Potter upgraded fund manager Perpetual’s (ASX:PPT) buy rating and price target to $45.00, implying 32% share price growth from its last close at $33.61. It comes as PPT announced the 75% purchase of U.S. based fund manager who manages US$44 billion.
  • Ahead of Rio Tinto (ASX:RIO) releasing their results tomorrow, UBS reiterated its hold rating and price target of $102 for RIO, implying its shares will fall from yesterday’s close of $102.89. UBS says with commodity prices being slower, earnings are tipped to fall 6% to US$4.6 billion.
  • Following HUB24’s (ASX:HUB) fourth quarter trading update, Citi maintained its buy rating and $14.40 target for the stock.