Buy, Sell, Hold – what the brokers say

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In just two days of trading, there have been broker actions on only five stocks, including the Woolworths upgrade by UBS, which we covered on Tuesday. Analysts are certainly taking advantage of the shorter week for a break.

In the good books

Credit Suisse upgraded Alacer Gold (AQG) to Outperform from Underperform. Ahead of the March quarter production numbers, the broker has adjusted sulphide operating expectations, forecasting a higher start-up grade. There are no changes to near-term earnings but a 2017/2018 uplift drives a valuation change.

Alacer Gold (AQG)

Following its March quarterly activities report, Mount Gibson Iron (MGX) was upgraded to Outperform from Neutral by both Credit Suisse and Macquarie and to Add from Hold by CIMB Securities. Third-quarter production was behind CIMB’s estimates but the company remains confident it can deliver 9.5mt for FY14. A positive update on infill drilling and outcomes from optimisation studies offers potential catalysts for the stock. Credit Suisse believes Mount Gibson has been steadily overcoming short mine life through exploration and minor acquisitions. Mt Gibson’s production, sales, product mix, realised prices and cash flow all disappointed Macquarie. But the broker has upgraded to Outperform based on strong expectations for June quarter production. FY14 guidance has been maintained.

Mount Gibson Iron (MGX)

In the not-so-good books

UBS downgraded Charter Hall Group (CHC) to Neutral from Buy on the back of strong price growth, which means it is approaching full valuation. Charter Hall has outperformed both the A-REIT and broader equities market by around 8% over the past quarter.

Charter Hall Group (CHC)

The above was compiled from reports on FNArena, which tabulates the views of eight major Australian and international stock brokers: BA-Merrill Lynch, CIMB, Citi, Credit Suisse, Deutsche Bank, JP Morgan, Macquarie 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 regards to your circumstances.

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