In the good books
Fairfax Media (FXJ) was upgraded to Buy from Neutral by UBS and to Outperform from Neutral by Credit Suisse. B/H/S – 3/1/0. Fairfax has provided a trading update, which was largely in line with UBS estimates. Revenue is tracking around 5% lower year-on-year. Meanwhile, a softer trading update from Domain (DHG) and a downgrade to guidance caught the broker by surprise. Target is reduced to $0.80 from $0.85. Credit Suisse says that further analysis of the proposed merger with Nine Entertainment suggests the deal will be dilutive for Nine shareholders in the first two years and only EPS neutral in year three post the merger. They believe management will seek additional synergies (read: cost cutting) to the tune of $30 million to achieve EPS neutrality. Price target lifts by 5c to 90c.
Iress Market Technology (IRE) was upgraded to Add from Hold by Morgans. B/H/S – 1/4/0. Morgans is upgrading its recommendation following a sharp contraction in the share price, which has been caused by global uncertainty. While expecting global markets to remain volatile and the share price to move accordingly, Morgans believes the stock is reasonable value for long-term investors. Target is $14.52.