It should be no surprise that broker downgrades are now outnumbering upgrades by a wide margin. The share market has been on a tear of late and there's not necessarily a sign around this strong upward momentum is going to run into a brick wall anytime soon.
On the negative side, we saw multiple downgrades in ratings for REA Group, Newcrest Mining and Tabcorp Holdings. All three companies also delivered a positive surprise, but analysts are turning less comfortable with specific valuations.
In the good books
BC Iron (BCI) was upgraded to Neutral from Underperform by Macquarie. December quarter production was better than Macquarie expected with cost reductions starting to have an impact. The company will assess the carrying value of its assets and the broker expects an impairment charge of $100 million is possible given the decline in iron ore prices.