Oil and commodity forecast cuts continue to dominate broker downgrades with ratings adjustments for Oil Search, Woodside and Worley Parsons.
In the good books
JP Morgan upgraded Fairfax Media (FXJ) to Neutral from Underweight. Buy/Hold/Sell 2/5/0 After the recent investor briefing, JP Morgan analyses Domain's competitive position and earnings evolution and adopts a more positive outlook on future pricing. The broker considers 2015 market revenue share a key indicator for determining whether Domain will be an improved number two in a strong market or able to take share from REA.
Morgan Stanley upgraded Fortescue (FMG) to Equal Weight from Underweight. Buy/Sell/Hold 0/6/2 Provided iron ore prices do not collapse, Morgan Stanley expects Fortescue will have a few years to work on a solution to its debts. While less than a month ago the broker envisaged the prospect of negative free cash flow, the rating is moved back to Equal-weight from Underweight. While the debt issue is not removed, the broker considers it is now more a longer-dated event.