In the good books
1. ALS (ALQ) was upgraded to Hold from Sell by Deutsche Bank
The FY19 result signalled growth was slowing in the minerals drilling business, which Deutsche Bank believes is indicative of an industry in the late stages of recovery. Meanwhile, the life sciences business is considered attractive because of the recurring nature of services and structural growth. Deutsche Bank upgrades to Hold from Sell as the stock is now trading closer to the target of $6.57.
In the not-so-good books
1. STAR ENTERTAINMENT GROUP (SGR) was downgraded to Hold from Add by Morgans
FY19 guidance for operating earnings (EBITDA) is weaker than Morgans expected. The company has highlighted the fact that domestic revenue growth has softened in the second half. Given the uncertain outlook, Morgans downgrades to Hold from Add. Risks include the global economic environment affecting VIP activity, as well as a reduction in consumer spending and competition and regulatory changes. Target is lowered to $4.04 from $5.67.
The above was compiled from reports on FN Arena. The FNArena database tabulates the views of eight major Australian and international stock brokers: Citi, Credit Suisse, Deutsche Bank, Macquarie, Morgan Stanley, Morgans, Ord Minnett and UBS. 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 regard to your circumstances.
