With the plethora of earnings results, brokers have been busy this week. Most changes have been due to price targets being met or the subsequent reaction in the market, rather than to the quality of the result.
In the good books
Ansell (ANN) was upgraded to Add from Hold by CIMB, and Neutral from Underperform by Credit Suisse. Ansell's FY14 results were in line with CIMB's estimates. The broker notes that while economic conditions remain sluggish, the company shows signs of growth, with a focus on high return profit improvements, which should drive earnings momentum. However, the broker has made a modest cut to FY15 and FY16 forecasts. The stock is upgraded to Add from Hold and the price target is raised to $22.13 from $20.71.
Following an FY14 result that was in line with forecasts, Credit Suisse upgrades to Neutral from Underperform. The broker has rolled over valuation and used a lower AUD rate. Hence the target increases to $21.30 from $19.00. Growth remains patchy and varies by geography. That said, Credit Suisse notes a large number of new products that are to be launched in FY15, which should assist.