The chart below shows the buy recommendations of brokers. Companies are only displayed in this table if at least 5 of the above mentioned brokers have a current position on the stock. A broker sentiment value of +1 means all brokers have a buy recommendation. The target price upside/downside is relative to the price at the time the table was updated.
The stocks with the largest target price upside this week are Alacer Gold Corp with 108.2% and NextDC with 58.2%.
[table “244” not found /]In the good books
BHP BILLITON LIMITED (BHP) Upgrade to Neutral from Sell by Citi B/H/S: 2/6/0
Citi commodities analysts have changed their view on commodities, now expecting 2016’s momentum is likely to remain the dominant theme for 2017 and 2018. The analysts remain bearish on bulk commodities whose rallies are labeled “a fluke” on the back of China changing its policies.
Price estimates have all gone up. BHP has been upgraded to Neutral from Sell.
See also BHP downgrade.
For more of last week’s upgrades, click here.
In the not-so-good books
BHP BILLITON LIMITED (BHP) Downgrade to Neutral from Outperform by Credit Suisse B/H/S: 2/6/0
Credit Suisse updates its commodity price forecasts for 2017, upgrading iron ore, thermal coal and copper prices by 22%, 25% and 23% respectively.
Underlying EBITDA is revised up 33% and 35% in FY17 and FY18 respectively. The broker notes BHP has been widely criticised for under investing in its conventional oil business but has now sanctioned the Mad Dog 2 expansion and first oil is expected in 2023. The company is also the winning bidder for 60% of the block containing the Trion discovery in the Gulf of Mexico.
The stock has outperformed the Australian market by 37% in the past year and is now at around fair value, in the broker’s opinion. Rating is downgraded to Neutral from Outperform. Target is raised to $26.50 from $24.00.
See also BHP upgrade.
REGIS HEALTHCARE LIMITED (REG) Downgrade to Hold from Add by Morgans B/H/S: 1/2/0
The government and the aged care industry have found some compromises to ensure that funding is better targeted to residents with the highest care needs. The company has re-confirmed FY17 EBITDA guidance of 15% growth.
Morgans makes no changes to forecasts but adjusts its target down to $5.02 from $5.13. Rating is downgraded to Hold from Add given the rally in the share price.
For more downgrades, click here.
Earnings Forecast
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