Positive news followed through thick and fast last week in the form of stockbroker recommendation upgrades. The good news continues with positive adjustments to valuations/price targets outnumbering reductions, with the added observation that negative amendments, while fewer, have been far greater in isolated cases.
In the good books
CHALLENGER LIMITED (CGF) was upgraded to Outperform from Neutral by Macquarie. B/H/S: 1/5/1. Funds management revealed strong momentum in the March quarter, Macquarie suggests, particularly in the context of a fairly weak quarter for other listed fund managers. FY18 guidance for normalised net profit of $545-565m has been maintained. Macquarie upgrades to Outperform from Neutral, expecting net book growth rates to be sustained and with near-term credit quality metrics holding up. Target is raised to $13.00 from $12.95.