In the good books
Challenger (CGF) Upgrade to Outperform from Neutral by Macquarie. Challenger's preliminary forecasts for the first half suggest to Macquarie that, while credit risks are elevated, the valuation adequately compensates for this.
The broker upgrades to Outperform from Neutral. Earnings estimates are revised up by 2.8% for FY16 and FY17.
ResMed (RMD Upgrade to Outperform from Neutral by Credit Suisse. Underlying earnings were 6.0% ahead of Credit Suisse's forecast in the December quarter. US mask sales growth has likely been underpinned by the Jaysec and CareTouch acquisitions, the broker believes. Rating is upgraded to Outperform from Neutral, with current valuations considered relatively undemanding.