Buy, Hold, Sell – What the Brokers Say

Founder of FNArena
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In the good books

1. CIMIC GROUP (CIM) was upgraded to Neutral from Underperform by Macquarie

First half net profit was below expectations. Mining division strength stood out, delivering 26% growth in pre-tax profit. Operating cash flow was well below expectations. The company has indicated it is moving to alliance-style, rather than fixed-price, contracts which have a more even cash flow profile. Macquarie upgrades to Neutral from Underperform, given the extent of the fall in the share price and support from the share buyback. The broker reduces the target to $40.00 from $43.80. A return to positive construction growth is required to support a more favourable fundamental view, the broker asserts.

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