In the good books
AMP (AMP) was upgraded to Overweight from Equal-weight by Morgan Stanley. B/H/S – 4/3/1. Morgan Stanley believes AMP offers deep value and a potential path to rebuilding its brand. Elevated uncertainty, fear and speculation around the future of the company's business model appear overdone to the broker. Morgan Stanley believes the company's resilience will likely surprise and upgrades to Overweight from Equal-weight. Target is reduced to $4.50 from $5.75. Industry view: In line.
Fletcher Building (FBU) was upgraded to Neutral from Underperform by Macquarie. B/H/S - 2/4/0. The company has completed its NZ$750 million entitlement offer, which Macquarie believes will provide a firm platform on which to execute its strategic objectives. The broker believes the company's move to consolidate its product and geographic spread will be well received. More about this strategy will be learned in June. Target is raised to NZ$6.54 from NZ$5.30.