In the good books
BT Investment Management (BTT) Upgrade to Add from Hold by Morgans B/H/S 3/2/1
March quarter funds under management were down 3.1%, largely because of the drag from the British currency, Morgans observes. JO Hambro reported net inflows of $1.1bn.
The broker considers the structural growth drivers are intact and the company is executing well. Rating is therefore upgraded.
On a longer-term view, the broker expects certainty around Britain’s exit, or otherwise, from the European Union should alleviate currency concerns and the stock can re-rate towards the target.
In the not-so-good books
Alumina (AWC) Downgrade to Neutral from Buy by UBS B/H/S 4/2/1
The share price is up 13% in the year-to-date, supported by a 25% rebound in the spot alumina price, UBS observes. Still, despite the price improvement in the March quarter, the broker believes 40-50% of the alumina refining industry remains loss making.
Iluka Resources (ILU) Downgrade to Sell from Neutral by UBS B/H/S 1/1/5
Year-to-date, the share price has been volatile, UBS observes. The broker considers the outlook is subdued, although potential upside could come from tightening of global supply, particularly rutile, or if demand recovers.
UBS downgrades earnings forecasts for 2016 and 2017 and drops the rating to Sell from Neutral, given concerns that the stable pricing regime of the last three years is coming to an end.
Platinum Asset Management (PTM) Downgrade to Underperform by Credit Suisse B/H/S 0/3/1
March quarter funds under management were down 8%, affected by outflows and weak market movements. Credit Suisse downgrades earnings estimates for FY16 and FY17 by 3% and 4% respectively.
Rating is downgraded, as retail outflows appear to be accelerating. The broker observes, historically, outflows can extend many months and remains cautious.
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