With the local share market continuing its uptrend throughout June, one would feel inclined to think stockbroking analysts are issuing more downgrades than upgrades for individual ASX-listed stocks, but not so.
For the week ending Friday 21 June 2019, FNArena counted 7 upgrades and 7 downgrades.
AGL Energy was the only stock mentioned twice (two upgrades). Moreover, only two downgrades moved to Sell (with Coca-Cola Amatil and WiseTech Global the unlucky receivers). On the other hand, only three upgrades lifted to Buy. A number of companies is enjoying increases to profit forecasts, including Nearmap, Pushpay Holdings and Alacer Gold, but the pendulum remains firmly biased towards more negative adjustments. Pilbara Minerals, Wesfarmers, Caltex Australia, Fonterra, Senex Energy, and others continue to see forecasts under noticeable pressure. With the August reporting season only six weeks away, this is going to be an interesting dynamic underneath the Australian share market. Lower bond yields and RBA rate cuts versus operational challenges and downward pressure on profit estimates.