Buy, sell, hold – what the brokers say

Editorial director of Switzer
Print This Post A A A

It was a very slow week on the upgrades and downgrades front, with brokers apparently still stuck in long weekend mode. There were three upgrades and just one downgrade since our last update on Tuesday, with no new recommendations above a hold.

In the good books

Deutsche Bank upgraded Newcrest (NCM) to Hold from Sell, following the announcement of a succeeding CEO when Greg Robinson leaves the company in the second half of FY14. Incoming CEO, Sandeep Biswas will be initially appointed as chief operating officer in January next year.

Deutsche Bank thinks the change will be greeted favourably by investors, and could be the start for further strategic decisions in the next couple of years.

JP Morgan upgraded Bendigo Bank (BEN) from Underweight to Neutral. The broker previously preferred Bank of Queensland (BOQ) over Bendigo & Adelaide in the regional banking sector, but believes that the relative valuation gap has closed.

JP Morgan also upgraded CBA to Neutral from Underweight, again citing closing gaps in relative valuation among the major banks. The broker said the banks have ground away the 15% correction that was seen in May and June and have now returned to levels of six months ago. The upgrade was given despite the broker seeing the banking sector as fully valued.

In the not-so-good books

The only downgrade of the week went to Hillgrove Resources (HGO), with JP Morgan downgrading the company to Neutral from Overweight. The broker cited the recent capital raising, and lower copper price assumptions in their decision.

The above was compiled from reports on the FNArena database, 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.

Also in the Switzer Super Report:

Also from this edition