In the good books
St Barbara (SBM) was upgraded to Buy from Hold by Deutsche Bank. B/H/S – 3/1/1. Fears for a Sino-USA trade war have pushed down prices for commodities, and related share prices, but Deutsche Bank analysts see resilient demand, plus policy response in China, as the harbinger of better times ahead. All in all, the sector update includes an upgraded outlook for Aluminium prices as well as short-term Alumina prices. Price forecasts have also increased for Thermal Coal, crude oil, iron ore, manganese and Coking coal. Downgrades have been implemented for shorter-term copper, zinc and cobalt forecasts. Target price is $4.20.
In the not-so-good books
OceanaGold (OGC) was downgraded to Hold from Buy by Deutsche Bank. B/H/S – 5/1/0. Deutsche Bank’s sector update (outlined above), results in a downgrade for OceanaGold. Valuation is the prime motivator here. Price target moved to $4.30.
Woodside Petroleum (WPL) was downgraded to Sell from Neutral by Citi. B/H/S – 3/3/1. Share prices of energy producers are on a tear, on the back of abundant market optimism and rising crude oil prices, but Citi analysts are warning there are risks in LNG markets, and investors should reconsider whether paying up now might be too early or too risky. Citi thinks today’s share price looks “full value” no matter what metric used. Target price moves to $34.64 from $34.14. Estimates have lifted.
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.
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