Reporting season continues to bring more downgrades than upgrades as the market remains hard to impress.
In the good books
Macquarie upgraded BHP to Outperform from Neutral. BHP's earnings beat the broker by 13%. Lower costs for iron ore and copper contributed and a strong performance was posted by the South32 assets. Forecast capex has been cut further, which should allow a cash surplus to emerge.
Morgans upgraded Flight Centre (FLT) to Add from Hold. The first half was better than the broker expected and full year guidance looks comfortably achievable. Morgans has greater confidence in the outlook now.