Top Ten Weekly Recommendation, Target Price, Earnings Forecast Changes

This story features CSR LIMITED. For more info SHARE ANALYSIS: CSR

By Chris Shaw

In a week characterised by post profit season sector reviews the eight brokers included in the FNArena database have on balance lifted ratings, with 11 upgrades against seven downgrades. Total Buy ratings now stand at 58.2%, up from 57.6% last week.

Among energy sector plays both Horizon Oil ((HZN)) and Oil Search ((OSH)) scored upgrades, the former a reflection of changes to estimates following full year earnings results and the latter following a sector review. United Group ((UGL)) and DUET ((DUE)) enjoyed upgrades on valuation grounds, while recent share price weakness has seen ratings lifted for both Sonic Healthcare ((SHL)) and Nufarm ((NUF)).

On the downgrade side, strong post profit result share price performance saw ARB Corporation's ((ARP)) rating cut, while it was a similar story for Domino's Pizza ((DMP)). Adjustments to sector expectations meant downgrades for Western Areas ((WSA)) and Discovery Metals ((DML)), while a disappointing earnings result saw Paladin's ((PDN)) rating cut. Valuation was the reason given for a downgrade for Primary Healthcare ((PRY)), while ratings for Charter Hall Office ((CQO)) have also been adjusted on the back of a corporate offer for the company.

Primary Healthcare saw minor changes to earnings estimates this week, these enough to prompt an increase in price target. It was a similar story at both Sonic Healthcare and ARB Corporation, while targets were also adjusted higher for both UGL and Oil Search.

Targets as well as earnings were cut for Paladin on the back of its disappointing earnings report, while similar changes were made to models for Independence Group ((IGO)) following a result stockbrokers labeled "disappointing".

Lower nickel price assumptions have prompted a cut to both earnings and price target for Western Areas, while a post result review has seen the price target for Horizon Oil trimmed slightly. Near-term earnings headwinds being factored in have also resulted in a cut in target for Nufarm.

Elsewhere, the shift to a more conservative view impacted on earnings expectations and price target for Bank of Queensland ((BOQ)), while a disappointing trading update saw similar changes for CSR ((CSR)). Post a debt refinancing, earnings forecasts for Elders ((ELD)) have been reduced, while higher overhead assumptions mean a trimming of estimates for Beach ((BPT)).

Softer consumer conditions have resulted in cuts to earnings for Thorn Group ((TGA)), while tough market conditions have caused brokers to lower earnings estimates for Macquarie Group (MQG)) as well.

Total Recommendations	Recommendation Changes
Broker Recommendation Breakup

 

Click to view our Glossary of Financial Terms