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 APN News and Media with 27.65% and Evolution Mining with 26.09%.
[table “262” not found /]
In the good books
CAPITOL HEALTH LIMITED (CAJ) Upgrade to Outperform from Neutral by Credit Suisse B/H/S: 1/0/0
The company has proposed a $40m equity raising, effectively removing gearing concerns. Credit Suisse observes, under a new team, cost savings and radiologist re-engagement seem to be the priority and the valuation is undemanding.
Against a backdrop of improving market dynamics, the broker suspects an equity re-rating is garnering momentum. Credit Suisse upgrades to Outperform from Neutral. Target is raised to $0.21 from $0.15.
CSR LIMITED (CSR) Upgrade to Hold from Lighten by Ord Minnett B/H/S: 1/4/1
Aluminium prices have continued to rise, up 10% since the start of the year. Ord Minnett still expects a slight surplus in 2017, but notes increased expectations of environment-led curtailment in China keeps the market sentiment constructive.
The broker raises quarterly aluminium price forecast by 5-25% over 2017-20. Incorporating the revised estimates into calculations leads to an upgrade to Hold from Lighten. Target rises to $4.15 from $3.80.
NINE ENTERTAINMENT CO. HOLDINGS LIMITED (NEC) Upgrade to Outperform from Neutral by Macquarie B/H/S: 2/2/1
Macquarie believes improved early-season ratings set a good platform for monetisation, offsetting headwinds in the industry.
The broker expects underlying cash conversion will be weak over the next few years but this is offset by other working capital adjustments and the sale of Willoughby.
A high percentage of earnings is still expected to be distributed to shareholders via dividends. Rating is upgraded to Outperform from Neutral. Target rises to $1.25 from $1.10.
In the not-so-good books
ASTRO JAPAN PROPERTY TRUST (AJA) Downgrade to Hold from Accumulate by Ord Minnett B/H/S: 0/1/0
Astro Japan has confirmed that Lone Star Real Estate made a proposal to acquire its assets at book value and this proposal was reiterated on February 28. The board has rejected the proposal on both occasions.
Ord Minnett envisages a scenario where the company can maintain the status quo but considers this less likely now. The latest news is considered to be a probable catalyst for Astro Japan to pursue a sale, either with Lone Star or another party.
Rating is downgraded to Hold from Accumulate and target is reduced to $6.75 from $7.50.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
