In the good books
UBS upgraded Bendigo Bank (BEN) to Neutral from Sell. Buy/Hold/Sell 1/5/2 The share price has pulled back since the result in February. UBS maintains its concerns over the impact of mortgage competition on margins and the reliance on the Homesafe house price gains to support the dividend. Still, potential sector net interest margin re-pricing after the bank capital raisings should support the regional banks.
Citi upgraded Oil Search (OSH) to Neutral from Sell. Buy/Hold/Sell 7/1/0 Citi has upgraded oil and foreign exchange forecasts. The broker expects the low point in oil will come in the second half of 2015, with supply and demand responses improving thereafter. The sector remains attractive for the broker although the near-term oil price is a risk. Oil Search is now closer to the broker's target as a result of the recent weakness and is upgraded to Neutral from Sell.
Citi upgraded Seek (SEK) to Neutral from Sell. Buy/Hold/Sell 3/3/2 Citi reviews the stock in the light of the recent pull back in the share price. Earnings forecasts are lowered by 4.0% for FY15. While near-term momentum is mixed, the medium-term growth story regarding domestic placements and international is intact. The broker still envisages downside risk to earnings but the shares are trading broadly in line with valuation so the rating is upgraded.