Buy, Sell, Hold – what the brokers say

Founder of FNArena
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The Australian share market remains in the grip of ongoing downgrades to global growth estimates and forecasts for commodities prices. Last week Credit Suisse and Macquarie updated their projections and both brokers dominate the tables for changes made to individual stock ratings, valuations and price targets, and earnings growth estimates. Amidst these headlines-grabbing de-ratings, stocks such as Federation Centres, Iluka Resources, and Myer Holdings, offer positive offset.

In the good books

FEDERATION CENTRES (FDC) was upgraded to Neutral from Underweight by JP Morgan Buy/Hold/Sell: 2/3/1 JP Morgan expects the company to experience a delayed benefit from the Novion merger over FY17-18. Once this is incorporated into forecasts, and dilutionary asset sales are cycled, the company should be strongly positioned.

ILUKA RESOURCES LIMITED (ILU) was upgraded to Outperform from Neutral by Credit Suisse Buy/Hold/Sell: 5/1/1 Credit Suisse commodity analysts recently released their quarterly update on commodities, which included more downwards revised price forecasts for most. It's not all bad news only though, with the analysts stating short term, they are a little more positive on iron ore and thermal coals as a supply response is evident, while base metals are seen as behind the curve. Amidst the carnage throughout the sector in terms of impact on profit forecasts, Iluka has received an upgrade.

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