Against a background of equities enjoying a stellar ride higher, stockbroking analysts are unusually busy issuing downgrades and upgrades for individual ASX-listed entities. For the week ending Friday 28 June 2019, FNArena registered no less than 13 upgrades in recommendations and 19 downgrades.
Irrespective of the quite impressive looking tally, the underlying observation remains that individual stock ratings are trending towards the Neutral/Hold zone. Out of all recommendations for the eight stockbrokers monitored daily by FNArena, more than 44% are now carrying a Hold/Neutral rating versus 39%+ in the Buy zone and the remaining 16% on Sell. This marks quite an unusually large gap between Hold/Neutral ratings and Buys.
A reflection of positive sentiment ignoring the tough macro-environment that’s keeping a lid of corporate profits? All of the eight stockbrokers are now carrying more Hold/Neutral ratings than Buys.