In the good books
Macquarie upgraded Drillsearch (DLS) to Outperform from Neutral. Buy/Hold/Sell 4/2/0 Macquarie has cut its Aussie forecasts by 8-9% to US63c in 2016, US67c in 2017 and US75c long term. Domestic oil and gas producers reporting in Aussie see a net 37% earnings forecast upgrade as a result, albeit for some this is offset by US dollar costs. The broker's sector multiple has risen as a result, as has the broker's rating for Drillsearch, to Outperform.
UBS upgraded Rio Tinto (RIO) to Buy from Neutral. Buy/Hold/Sell 6/2/0 With iron ore appearing the better commodity into 2016 through supply side discipline, as opposed to oil, UBS upgrades Rio Tinto to Buy from Neutral. Looking at production guidance for 2015, the broker observes the majority of commodities are expected to reveal negative or near-flat production growth.
Only Pilbara iron ore is expected to add meaningful production growth this year.