Buy, Sell, Hold – what the brokers say

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In the good books

HUON AQUACULTURE GROUP LIMITED (HUO) Upgrade to Buy from Accumulate by Ord Minnett B/H/S: 2/0/0

On the back of continuing demand growth, reduced competition, and the option to export to prevent oversupply, Ord Minnett factors in higher wholesale salmon prices for Australia. This has a result of increasing estimates for the company's operating earnings by 11% and 13% for FY17 and FY18 respectively.

Rating is upgraded to Buy from Accumulate and the target to $5.86 from $5.31. The broker makes the stock its preferred pick in the salmon sector as it has greater upside potential thanks to higher leverage to wholesale prices.

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