Overall activity in the land of broker downgrades and upgrades remains relatively quiet. One stand-out feature is that although yield stocks might be looking less attractive as market strategists start recommending a bias towards cyclicals and growth stocks, four of the past week's six positive upgrades were for yield stocks.
In the good books
M2 Telecommunications (MTU) was upgraded to Buy from Neutral by Citi. With almost two-thirds of the company's staff now in Manila, leveraging that capability into more sales is seen as a profit driver over the medium term.
Spark Infrastructure (SKI) was upgraded to Outperform from Neutral by Credit Suisse. Credit Suisse thinks the company can deliver on distribution growth while maintaining gearing, even under the most adverse scenario. The stock is considered attractive to long-term investors, hence the rating is raised to Outperform from Neutral.