While macro-optimism has pushed up share prices over the first three weeks of the new calendar year, investors in Australia might be heartened by the observation that stockbroking analysts locally are equally supporting the upward move in share prices by issuing more recommendation upgrades than downgrades for individual ASX-listed stocks.
For the week ending Friday 18 January 2019, FNArena registered 16 upgrades versus nine downgrades. Alas, due to technical problems this week's Report contains no insights on valuations and consensus earnings estimates but anecdotal observations suggest both are trending south ahead of the February reporting season. Most upgrades are inspired by weak valuations with both Michael Hill and News Corp receiving two upgrades during the week. That's two times up to Neutral/Hold for the former, and two times up to Buy for the latter. All but two downgrades have moved to Neutral/Hold; the two "unlucky" ones, so to speak, to receive fresh Sell ratings are Platinum Asset Management (covered in last Thursday’s Switzer Report) and Sydney Airport.
In the good books