In the good books
GUD Holdings (GUD) was upgraded to Neutral from Sell by UBS. B/H/S – 2/3/0. The company recently acquired Disc Brakes Australia and is adding new lines to its automotive division. Feedback from industry appears supportive of the momentum in the automotive business. The company appears well placed to acquire high-quality aftermarket brands that are not too reliant on sales to either Bapcor (BA)) or Repco. Target is raised to $14.60 from $11.75.
Macquarie Group (MQG) was upgraded to Overweight from Equal-weight by Morgan Stanley. B/H/S – 4/3/0. Morgan Stanley believes Macquarie Group is benefiting from a favourable and diversified business mix. On a five-year outlook, the broker is increasingly confident and upgrades to Overweight from Equal-weight. Morgan Stanley observes the business is geared to the real economy, not just financial markets, and remains a leading alternative asset manager. Target is raised to $130 from $100.