Brokers downgrade five ASX shares including Endeavour and Northern Star

Major equities brokers have revised their ratings across several prominent Australian listings, issuing downgrades for five ASX shares following recent corporate reports and preliminary financial disclosures according to reporting from Fool. The shifting analyst sentiment arrives while broader international markets experience turbulence, with Indian benchmark indices sliding as oil prices climb amid renewed geopolitical tensions surrounding the Strait of Hormuz noted live updates from Economictimes.

The wave of local broker activity impacts companies across multiple sectors, including consumer staples, mining, utilities, and consumer discretionary. Market participants are carefully evaluating updated corporate guidance, upcoming reporting schedules, and lingering macroeconomic pressures that continue to influence valuations on the S&P/ASX 200 Index.

Endeavour Group Faces Trim Rating Amid One-Off Costs

Among the high-profile adjustments, consumer staples heavyweight Endeavour Group saw its shares downgraded by Morgans from a hold rating to a trim reported Fool. The broker action followed the release of Endeavour's preliminary financial results for the 2026 financial year. The data showed a minor year-over-year lift in group sales reaching $12,212 million, yet underlying net profit after tax declined to $363 million compared to $426 million in the previous financial year.

Underlying sales, earnings before interest and tax, and net profit figures arrived largely in line with market expectations. However, the company disclosed $372 million in total one-off costs—split into cash and non-cash components—stemming from the write-down of asset carrying values and expenses tied to the execution of its ongoing strategy review. Consequently, Morgans trimmed its underlying earnings forecasts for the 2027 and 2028 financial years by 2%. Despite the earnings reduction, the broker lifted its 12-month price target from $2.80 to $3.20, pointing to an uplift in peer valuation multiples.

Brokers have warned that underlying liquor demand remains vulnerable under elevated interest rates, persistent cost-of-living challenges, and an uncertain macroeconomic climate. Furthermore, analysts highlight that the company's new management strategy carries notable execution risks.

Northern Star Resources and Other ASX Downgrades

Gold producer Northern Star Resources also faced a broker reassessment according to Fool. Morgans lowered its rating on the gold miner from a buy to an accumulate following the release of the company's June quarter report, simultaneously reducing its 12-month price target from $26 to $24.

Additional rating cuts hit other sectors across the ASX board. Copper and gold miner Firefly Metals was downgraded to a hold rating by MA Financial. Utilities provider APA experienced a downgrade to a hold rating from Jarden. Meanwhile, consumer discretionary group Guzman Y Gomez received a hold rating downgrade from UBS, as analysts track potential capital gains heading into the company's upcoming corporate announcements.

Broader Market Backdrop and Global Pressures

While domestic brokers recalibrate Australian equities, international markets are navigating separate geopolitical and economic currents detailed Economictimes. Global investor sentiment has been pressured by rising oil prices following proposed restrictions on vessel passage through the Strait of Hormuz, where Iran and Oman have moved to impose tighter regulations and heavy penalties on ships deemed hostile. These developments run parallel to ongoing corporate earnings assessments in Wall Street and shifting momentum across global financial stocks.

What to Watch Next

• Endeavour Group is scheduled to release further details on its performance at its FY26 result on 24 August.
• The Mexican restaurant franchise group will announce its FY26 results on Friday, 21 August.