As brokers head into the blackout period for the February reporting season, activity was light on the ground. But of the actions that did occur, most were positive as analysts continued to find value. Early reporters – like JB Hi-Fi – were also rewarded with upgrades.
In the good books
BA Merrill-Lynch upgraded Challenger (CGF) to Neutral from Underperform.
The broker believes Challenger offers a unique value proposition in a market that could grow significantly in coming years, controlling 55% of annuities and attracting almost all new flows. Given CGF's structure, margin improvement and solid funds management performance, the broker can no longer justify an Underperform rating.