Banks and infrastructure stocks featured prominently on the positive side, though CommBank and Westpac only received upgrades to Neutral. Most upgrades in recent weeks have lifted ratings to Buy which has now resulted in Buy ratings outweighing Neutral ratings for the eight stockbrokers monitored by FNArena. This has not been seen for a long while.
All in all, resources stocks continue to dominate the overall picture with, unsurprisingly; Silver Lake Resources and Regis Resources claiming top spots for adjustments to price targets while Grange Resources and OZ Minerals top the tables for changes to profit estimates. Industrials stocks featuring include Sonic Healthcare (profit warning), Energy Developments (takeover), a2 Milk (also under corporate interest) and Boral who surprised with a better than expected FY15 guidance.
In the good books
Commonwealth Bank (CBA) was upgraded to Neutral from Sell by Citi. Buy/Hold/Sell: 1/6/1 APRA's recent announcements on additional regulatory capital requirements have proven less onerous than expected. Accordingly, Citi believes there is little in terms of near-term catalysts for short sellers to benefit from an Australian bank trade.