Analysts were busy digesting results this week, as earnings season kicked off. ANZ’s good result on Monday only prompted one upgrade, as the other seven major brokers all chose to keep their ratings unchanged.
Although its results disappointed, Cochlear was also upgraded as some analysts had already factored in the poor numbers.
In the good books
UBS upgraded ANZ to Buy from Neutral. The quarterly trading update revealed cash profit of $1.73 billion. UBS notes operating trends were solid and the bank now expects bad debt charges to be down around 10% in FY14. Concerns over emerging markets have led to ANZ underperforming over the past year but given the fall in the share price, the broker considers it's time to upgrade to Buy from Neutral. The seven other brokers on the database kept their ratings on hold following the quarterly update, with three Outperforms, two Neutrals and two Underperforms.