Broker activity in the shortened Easter week was mainly driven by analysts’ earnings revisions and share price falls, which improved valuations. Market darling Carsales.com.au is back in at least one broker’s good books and Woolworths also got an upgrade on the back of expectations for better grocery earnings.
As this is also the time when updates and re-assessments are being released for commodities prices, much of the overall activity is focused on local mining stocks, at least when it comes to adjustments in earnings estimates and valuations/price targets.
In the good books
Credit Suisse upgraded Carsales.com.au (CRZ) to Outperform from Neutral. Credit Suisse observes the share price is now below the level prior to its announcement to buy South Korean automotive trading business SK Encarsales and this provides a fresh opportunity to buy into Carsales.com's offshore expansion story at a reasonable valuation. The broker believes the acquisition was important as it bulks up the international portfolio and growth options.