Broker ratings for individual stocks remain skewed towards more downgrades, with mining services providers, property developers and retailers figured prominently. But overall it was a slow week last week, with just 14 actions in total.
In the good books
Bendigo & Adelaide Bank (BEN) was upgraded to Neutral from Underperform by CIMB Securities. The bank is now the cheapest in the sector, on the broker’s estimates, trading at a price/earnings discount of 6% to Bank of Queensland (BOQ). The stock is considered good value and a re-rating is likely, as concerns about legal risks from the Great Southern Plantations dispute abate and the path to Advanced IRB status builds momentum.
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