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Buy, Sell, Hold – what the brokers say

In the good books

Citi upgraded Leighton Holdings to Neutral from Sell after the company announced it would sell the John Holland business for $1.15 billion. Citi finds there is little to inspire in terms of new work being won but major loss-making projects are no longer bleeding cash and costs being taken out mean future margins can rise on the lowered revenue.

JP Morgan upgraded Treasury Wine Estates (TWE) to Neutral from Underweight. While JP Morgan believes the wine industry remains a tough industry to be in, the weaker Aussie dollar is going to make Treasury's challenges a little easier to deal with. In addition, the stockbroker believes execution risk for the new managing director's strategy has reduced.

Credit Suisse upgraded Wesfarmers (WES) to Neutral from Underperform. The broker has lowered its coal price forecasts and thus its earnings forecasts for Wesfarmers' coal division and the group. Recent share price weakness is enough for the broker to upgrade to Neutral from Underperform, but given WES still trades at a 20% premium to the index, above its long-term average, the broker does not consider the stock a compelling proposition.