Buy, Hold, Sell – what the brokers say

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In the good books

Altium Limited (ALU) was upgraded to Buy from Hold by Deutsche Bank. B/H/S – 1/1/2. Deutsche Bank notes another strong result in FY18, with operating metrics comfortably moving towards FY20 guidance. The broker believes the effort that has gone into product development should continue to yield results for years to come and forecasts a three-year EBIT growth rate of 22%. Target is $24.90.

CSR was upgraded to Equal-weight from Underweight by Morgan Stanley. B/H/0 – 1/5/0. The CSR share price has fallen 22% since the results in May, which, in Morgan Stanley's view, has been prompted by increased costs in the aluminium business. The valuation now appears more appropriate. CSR carries the greatest exposure to the Australian housing cycle across all major Australian building materials stocks in the broker's coverage. While the negative news around the sector will create a difficult environment, Morgan Stanley believes CSR remains a quality business at the wrong point in the cycle. Target is $4.75. Industry view is Cautious.

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