The total number of Buy ratings for the eight stockbrokers monitored daily by FNArena stands now at a firm 45%, with the margin widening, versus 40.24% Neutral and 14.76% Sell ratings. History suggests, when Buy ratings are this far ahead of Neutral/Holds, this might herald tougher times for the local share market.
In the good books
TREASURY WINE ESTATES LIMITED (TWE) was upgraded to Neutral from Underperform by Credit Suisse. B/H/S: 3/3/1. Credit Suisse had already identified issues in China with regard to the Rawson's Retreat brand as early as July last year. Treasury Wine acknowledged the problem at the time and began taking steps to rectify it. Hence the press reports sparking the sell-off in the stock yesterday are old news and, as far as the broker is concerned, exaggerated. Credit Suisse still believes FY19 guidance of 25% earnings growth is achievable, but the broker also believes consensus forecasts for FY20 are too high. Hence an upgrade to Neutral from Underperform on the stock price fall, with an unchanged $15.65 target.