The brokers must have all collectively headed back to work this week, as there have been many actions in just the first half of the week. Next Monday’s Buy, Sell, Hold – what the brokers say will have a full list of analyst actions but here are the highlights – which is still quite an extensive list.
In the good books
Morgan Stanley upgraded BlueScope Steel (BSL) to Overweight from Equal-weight. Steel spreads are continuing to improve and growth in FY16 is being priced in. BlueScope is one of Morgan Stanley's preferred building material stocks and the rating is upgraded to Overweight from Equal-weight.
Macquarie Group (MQG) was upgraded by Morgans to Add from Hold and to Buy from Neutral by UBS following an upgrade in its guidance for the financial year. Morgans believes the upgraded guidance alleviates market concerns regarding MQG’s equity and lending exposures in the commodities space. Underpinning the UBS upgrade is the fact the analysts believe Macquarie has stuck to a conservative forecast.