Top Ten Weekly Recommendation, Target Price, Earnings Forecast Changes

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By Chris Shaw

The past week has been another one where ratings upgrades have easily outnumbered downgrades, the eight brokers in the FNArena database lifting recommendations on 18 stocks and cutting ratings for just nine companies. Total Buy ratings now stand at 58.7%, up from 58.2% last week.

Sigma Pharmaceuticals ((SIP)) was among those being upgraded during the week, this on the back of a better than expected interim earnings result. Nufarm ((NUF)) has lifted guidance leading into this month's full year result and this prompted one upgrade in rating.

Sector reviews have generated upgrades for Oil Search ((OSH)) , Newcrest ((NCM)) and Oz Minerals among the resource plays, while beneficiaries among the industrials have been Ramsay Health Care ((RHC)) and Toll Holdings ((TOL)).

Among those companies receiving downgrades to ratings were Ansell ((ANN)) as part of a healthcare sector review and Qantas ((QAN)) on the back of a review of the transport sector. Envestra ((ENV)) also saw its overall rating drop following a valuation downgrade and an initiation of coverage.

The better than expected result from Sigma also translated into price target increases, while sector reviews also generated higher targets for Newcrest, Ramsay, Toll, Oil Search and Panoramic Resources ((PAN)).

Targets have fallen for Aquila (AQA)), Mincor Resources ((MCR)), Independence Group ((IGO)) and Western Areas ((WSA)) following the sector reviews, while targets for CSL ((CSL)), Qantas and Nufarm also fell post reviews.

Sigma was one of the leaders in terms of increases to earnings forecasts, while better than expected results from Perseus Mining ((PRU)) also saw an increase to estimates for the coming year. A review of the outlook for DUET Group ((DUE)) generated an increase in forecasts for the company, while a tour of Star City's upgraded facilities has produced some increases to numbers for Echo Entertainment ((EGP)). 

Higher retrievals expectations result in a lift in forecasts for Graincorp ((GNC)), while the likes of Santos, Newcrest and Oz Minerals enjoyed increases to forecasts post commodity price and sector reviews.

Not all resource stocks were beneficiaries as forecasts for Aquila, Mincor ((MCR)), Gindalbie ((GBG)), Australian Worldwide Exploration (AWE)) and OneSteel ((OT)) have been cut over the past week. A deterioration in market conditions led to cuts in estimates for Macquarie Group ((MQG)), while forecasts were also lowered for Ten Network ((TEN)) and Woolworths ((WOW)). 
 

Total Recommendations	Recommendation Changes
Broker Recommendation Breakup

 

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