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 125.3% and Vocus Communications with 61.8%.
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In the good books
INDEPENDENCE GROUP NL (IGO) Upgrade to Outperform from Neutral by Credit Suisse B/H/S: 2/3/1
The company has announced a 58% increase in ore reserves at Tropicana. Credit Suisse upgrades to Outperform from Neutral. Target is raised to $4.50 from $4.35.
Accelerated mining and grade streaming has re-commenced and this is expected to increase average head grade to 2.3g/t gold from 1.8g/t over the next three years, lifting average annual production rates to 450-500,000 ounces from the second half of 2017.
ORORA LIMITED (ORA) Upgrade to Buy from Neutral by Citi B/H/S: 6/2/0
Citi analysts suggest the market is not reading Orora accurately which has been given the label “acquisitive growth” and the recent acquisition of Register Print in the US is yet another example.
Bottom line: Citi thinks investors are underestimating how well the company is doing domestically. Estimates have gone up by 2% and 5% for FY17-FY18 and only half of the latter increase is due to the acquisition.
Target lifts to $3.15 from $2.95. Upgrade to Buy from Neutral.
In the not-so-good books
CALTEX AUSTRALIA LIMITED (CTX) Downgrade to Lighten from Accumulate by Ord Minnett B/H/S: 4/2/0
Irony oh irony! Caltex’s below consensus market guidance for the present financial year was actually above what Ord Minnett had pencilled in. Yet, another in-depth review by the analysts has led to the conclusion the risk from Woolworths Petrol (WOW) volumes loss is not sufficiently discounted into the share price.
Hence why the stockbroker downgrades to Lighten from Accumulate while reducing the target price to $27.50 from $38.00. Estimates have been changed: CY16 up 3.5%; CY17 down 7.7%; and CY18 down 9.2%.
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