Daily FNArena News - Australia

Macquarie Leisure’s 1Q results were in line with expectations but UBS has downgraded the stock after recent gains, making the first break from what had been unanimous Buy ratings.

Housing affordability is an election issue but while house prices continue to increase in inner city areas in particular St George Bank notes household balance sheets remain in good shape.

Shares of Arasor International jumped following the announcement of a new JV.

Solid results from its bus and UK taxi joint ventures support the market’s positive view on Cabcarge and have prompted JP Morgan to Upgrade the stock to Overweight.

But then – it always does.

Both Citi and GSJB Were have upgraded ANZ Banking Group to Buy this week as the stock is now at a discount to its sector peers despite what brokers see as solid earnings growth.

Computershare lifted earnings guidance yesterday and brokers have increased earnings forecasts as a result but not all are convinced the gains can be sustained.

Business conditions and capacity utilisation are at record levels according to NAB’s Monthly Business Survey for October, while there are signs of increasing wages pressure.

Brokers are not convinced of the benefits of the Alinta acquisition for SP Ausnet shareholders given the dilution in equity and questions over the estimated synergies.

Strong underlying conditions sees CommSec revise higher its estimates for Australia’s S&P/ASX200 Index, the broker now predicting 6,800 by year’s end and 7,250 by the middle of next year.