Week three of the domestic February corporate reporting season saw the deluge in recommendation downgrades continue. For the week ending Friday, 22nd February 2019, FNArena counted no less than 38 downgrades for individual ASX-listed entitties, against 17only upgrades.
Total Neutral/Hold ratings held by the eight stockbrokers monitored daily is rapidly closing in on total Buy ratings; 42.29% versus 43.28%, which can serve as an indication of where most downgrades lead to. The fact that share market indices have remained inside a strong upward channel provides an easy explanation as to why.
Only two brokers out of the eight are carrying more Buy ratings than Neutral/Holds; retail stockbrokerages Morgans and Ord Minnett.