Buy, Hold, Sell – what the brokers say

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In the good books

APA Group (APA) was upgraded to Outperform from Neutral by Macquarie. B/H/S – 4/2/2. Macquarie upgrades earnings estimates for FY18 by 1.8% and FY19 by 2.8%. The broker believes the drag from the regulatory threat has run its course. The regulator risk discount is removed and the broker believes the US is emerging as an attractive growth option. Rating is upgraded to Outperform from Neutral. Target is raised 11% to $8.67.

Domino’s Pizza (DMP) was upgraded to Add from Hold by Morgans.  B/H/S – 3/4/1. Morgans continues to believe that 20% net profit growth in FY18 will be a tall order, although any miss is likely to be modest. The broker expects the company can deliver around 15% net profit growth per annum over the next 3-5 years. The broker also notes potential upside from further acquisitions and suspects the company will not launch a new category/territory without material accretion being on the cards. Target is raised to $51.51 from $50.39.

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