Buy, Hold, Sell – what the brokers say

Founder of FNArena
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The balance between stockbrokers downgrading and upgrading their recommendations for individual ASX-listed stocks remains overwhelmingly positive, but underneath the surface, where valuations and earnings forecasts are being assessed and recalibrated, the outlook seems more mixed.

Luckily for Australian investors, the negative balance for the week merely affects smaller cap companies while large cap names feature prominently among the rating upgrades. Unfortunately, Trump's negotiation antics with China are currently dominating news headlines, and this is weighing upon short-term prospects for equities globally.

In the good books

AUSTRALIA & NEW ZEALAND BANKING GROUP (ANZ) was upgraded to Buy from Neutral by Citi. B/H/S: 4/4/0. The share price has declined around 6% in the year to date and Citi upgrades to Buy from Neutral. The broker believes ANZ, in particular, will be able to shift its dividend payout higher, to 80% by the second half of 2020 from the current 65%.  The CET1 ratio is forecast to remain above the 10.5% target despite around $7 billion in share buybacks. Target is steady at $30.

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