There have been more downgrades than upgrades in the first half of the week mostly on earnings revisions. CSR got an upgrade based on its exposure to the Australian residential construction cycle.
In the good books
Morgans has upgraded CSR (CSR) to Add from Hold. Morgans’ analysts have revisited their projections and this has led to increased forecasts. Adding to the stock's appeal, the analysts observe CSR offers the most direct exposure to the Australian residential construction cycle, while avoiding exposure to construction materials. The analysts remain concerned about the latter, given levels of activity from the non-residential and engineering construction segments.
Macquarie has upgraded Wesfarmers (WES) to Neutral from Underperform. Macquarie reviews the challenges and opportunities in the wake of Glencore Australia's closure of its coalmines for three weeks in mid December. The broker believes Wesfarmers is well placed for a turn around in the event of an improvement in the coal market and has the ability to raise and deploy capital more efficiently than its peers.