In the good books
Bellamy’s Australia (BAL) has been upgraded by Morgans to Add from Hold Buy/Hold/Sell: 2/0/0. The company has provided a strong trading update and, with the benefits of cost management, has materially upgraded FY18 earnings guidance for the second time. Morgans sets forecasts at the top end of guidance ranges, upgrading EBITDA forecasts for FY18 and FY19 by 29.9% and 44.5% respectively, and has greater conviction in the company's growth outlook. Target is raised to $14.70 from $9.95.
BT Investment Management (BTT) has been upgraded to Add from Hold by Morgans Buy/Hold/Sell: 3/3/0. First quarter funds under management were up 2.4%, predominantly driven by fund performance. Morgans upgrades, believing the company's diversified exposure supports a solid medium-term outlook. The previous Hold rating was based on a short-term view to assess first-quarter flows. Target is raised to $12.28 from $11.96.
OceanaGold (OGC) has been upgraded to Buy from Hold (1) by Deutsche Bank Buy/Hold/Sell: 5/1. Deutsche Bank notes commodities are trading well above historical real averages and marginal cost. Yet, global demand should continue to improve despite a softening in the Chinese property market. Deutsche Bank finds base metals more attractive than the bulk miners. Upgraded gold and copper price forecasts have benefited OceanaGold for 2018/19. Deutsche Bank upgrades to Buy from Hold on valuation and the stock remains a top pick. Target is $3.70.