In the good books
Regis Resources (RRL) was upgraded to Neutral from Sell by UBS. B/H/S – 1/4/3. FY18 results were slightly ahead of expectations. UBS attributes share price weakness to the FY19 guidance issued in the quarterly report in July. Higher cost estimates are based on pre-stripping activity at new satellite ore bodies that are to be opened up in FY19, as well as inflation in oil prices. The broker believes the higher costs have now been more than priced into the stock and value is starting to emerge. Target rises to $4.20 from $3.18.
Platinum Asset Management (PTM) was upgraded to Neutral from Underperform by Credit Suisse. B/H/S – 0/3/1. FY18 results were slightly better than Credit Suisse had expected due to some lower quality supporting items. Fund performance has deteriorated in recent months and this will impact Platinum's ability to earn performance fees in FY19. The broker has cut fee forecasts by 50%. The broker has made minor changes to EPS forecasts with FY19 unchanged and FY20 upgraded by 2%. Credit Suisse upgrades to Neutral from Underperform, believing the stock offers better value than sector peers. Target is raised to $5.25 from $5.15.