Top Ten Weekly Recommendation, Target Price, Earnings Forecast Changes

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    [0] => Array
        (
            [0] => ((WES))
            [1] => ((PAN))
            [2] => ((SFR))
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    [1] => Array
        (
            [0] => WES
            [1] => PAN
            [2] => SFR
        )

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This story features WESFARMERS LIMITED, and other companies.
For more info SHARE ANALYSIS: WES
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Chris Shaw

Ratings downgrades outnumbered upgrades over the past week by 15 to 11, bringing the total proportion of Buy ratings by the eight brokers in the FNArena database to 53.2%. This is down from 53.7% last week. Given the share market sold off quite heavily during the week, this is quite a remarkable observation. Obviously, expectations are being re-adjusted and more optimism is now disappearing from expert models.

Among those enjoying upgrades over the week was Echo Entertainment Group ((EGP)), where ratings were lifted on both valuation and strong near-term operating momentum grounds. Valuation was also the argument behind upgrades for Wesfarmers ((WES)) and Australand ((ALZ)), while upgrades continued for Premier Investments ((PMV)) following a recent strategic review.

On the downgrades side recent share price strength saw ratings cut for Aston Resources ((AZT)), while valuation was also the driving force behind downgrades for both OceanaGold ((OGC)) and Panoramic Resources ((PAN)). Mount Gibson ((MGX)) also saw two downgrades, both coming on the back of a poor June quarter production report and some emerging mine life and strategy issues.

While Aston experienced downgrades to ratings there were also modest increases to price targets, these reflecting potential upside if the company was to become a target given ongoing consolidation in the Australian coal sector.

Gindalbie ((GBG)) also enjoyed an increase in price target, along with a rating upgrade, on the back of changes to iron ore price forecasts, but target changes over the week were far more pronounced on the downside. 

These included Panoramic and OceanaGold as higher cash costs were built into broker models, as well as GUD Holdings ((GUD)) as brokers digested a slightly weaker than expected full year earnings result. Price targets for Navitas ((NVT)) were also lowered as a tougher outlook was factored into expectations.

Gindalbie's increase in price target was supported by increases to earnings estimates, while earnings forecasts were also lifted for Kathmandu after management delivered better than expected earnings guidance for FY11.

An initiation of coverage for Sandfire ((SFR)) saw a fall in consensus earnings estimates, while also bringing to the market an Underweight rating to offset the two existing Buy ratings in the FNArena database. 

The downgrades for OceanaGold also extended to cuts in earnings estimates, while to reflect lower coal sales in the June quarter there were reductions to forecasts for Aquila ((AQA)). As well, following a generally weaker than expected quarterly result from Macquarie Bank ((MQG)) both earnings forecasts and price targets were reduced across the market. 
 

Total Recommendations	Recommendation Changes
Broker Recommendation Breakup

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