- Lend Lease was upgraded to Outperform on the back of a better growth outlook
- Mirvac Group was upgraded on the basis of the outlook for its new acquisition of Birkenhead Point
- NIB Holdings was upgraded following a de-rating of the stock over the past few months.
Stockbroker views and changes had a clear positive undertone last week. This expressed itself through 16 upgrades for individual stock ratings, which were only offset by four negative revisions. Stockbroking analysts went bargain hunting in the face of a stock market correction that showed, at times, signals of irrationality and even of fear.
In the good books
Deutsche Bank upgraded Adelaide Brighton (ABC) to Hold from Sell. Deutsche Bank still has concerns regarding further potential for contract losses but believes WA activity is robust and this should underpin reasonable growth in cement volumes. Recently announced acquisitions may have been expensive, but the broker believes it makes sense for the company to vertically integrate in markets where it has a dominant position in cement.