In the good books
Fisher & Paykel Healthcare (FPH) Upgrade to Buy from Sell by Citi B/H/S 3/1/1. The broker had had another look post first-half results release and they obviously liked what they discovered. Among the conclusions drawn is the company continues to grab market share from ResMed. Citi is forecasting solid earnings growth for the future.
Metcash (MTS) Upgrade to Overweight from Equal-weight by Morgan Stanley. B/H/S 3/2/2. In the wake of the first half results, Morgan Stanley has become more bullish on the stock, as the valuations appear more attractive. The broker cites evidence the food and grocery transformation is working. The results were far better than envisaged, and the broker believes the liquor and hardware businesses are well placed for growth.
Treasury Wine Estates (TWE) Upgrade to Outperform from Neutral by Credit Suisse B/H/S 1/6/0. Credit Suisse observes the Chinese wine market is growing rapidly, with retail prices for imported wines falling, and spurring strong demand.
They acknowledge that Treasury Wine’s brands are participating in this evolution, but its share of Australian wine exports to China is only 10%. The broker intends to visit China this month to assess the potential.
In the not so good books
Beadell Resources (BDR) Downgrade to Sell from Neutral B/H/S 1/0/2; Perseus Mining (PRU) Downgrade to Sell from Neutral B/H/S 2/3/1; Whitehaven Coal (WHC) Downgrade to Neutral from Buy B/H/S 4/0/4; by Citi. Commodity analysts at Citi have once again reduced prices forecasts across the board, including for energy. They do, however, anticipate better times ahead as 2016 should further re-balance markets. Citi’s anticipation of better prices concerns more 2017.
Forecasts remain bearish for oil and gas on a six months horizon, as well as for bulk commodities and gold and silver. The exceptions are copper and nickel.
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