Domestic stockbrokers accelerated the pace of ratings upgrades and downgrades for individually-listed stocks in the week ending Friday.
Adjustments are a combination of weak stocks becoming too cheap to maintain a negative rating, strong companies proving they still have enough oomph in them, and earnings beats that force analysts to review their previous stance. Things don't exactly get any easier with plenty of stocks receiving both upgrades and downgrades post the release of financial results.
In the good books
AMP (AMP) was upgraded to Buy from Neutral by Citi and to Neutral from Sell by UBS. Citi thinks net flows in wealth management were relatively healthy in the first half and this should position AMP for a turn in sentiment and continues to forecast 20% growth in FY14 underlying profit. AMP's 2013 result held few surprises but UBS suspects that, while structural and cyclical challenges persist, the worst is over and the earnings risks are now manageable.
See also AMP downgrade.