The faster than anyone expected swift recovery in Aussie equities is triggering a deluge in recommendation downgrades from whiplash-affected stockbroking analysts while the February reporting season continues to gather substance in Australia. For the week ending February 8, 2019 FNArena counted six recommendation upgrades by the eight stockbrokers monitored daily and all went to Buy from Neutral. Three of the upgrades (50%) followed the release of financial results, with GUD Holdings the only one to see its share price punished at first, then recover steadily.
There was a lot more action on the downgrades side of the week's ledger with 19 downgrades recorded, of which only three ratings moving to Sell. Those three unlucky ones are Sydney Airport, IDP Education, and Evolution Mining. Large cap stocks including CSL, AGL Energy, Fortescue Mining, Insurance Australia Group, Transurban, and banks National Australia Bank and Westpac all received one downgrade each.
In the good books