It’s been a slow start to the week for brokers, but most of the movement was on the positive side of the equation as analysts acted after company announcements, such as Macquarie Group’s outlook update.
In the good books
JP Morgan upgraded SP Ausnet (SPN) to Overweight from Neutral. Declines have been exacerbated by a mild winter but SP AusNet's transmission revenue remains unaffected by demand. Moreover, higher bond rates look set to improve regulatory returns from the Victorian electricity transmission.
Deutsche Bank upgraded Pharmaxis (PXS) to Hold from Sell. The company is facing considerable challenges including slow sales and the risk that competing therapies could reduce the market opportunity. Deutsche Bank has scaled back sales expectations in Europe and removed further US sales estimates and expected trial costs. It now thinks the stock is trading near fair value.