Caltex (CTX) Upgraded to Buy from Hold by Ord Minnett B/H/S: 3/4/0
Ord Minnett has reviewed its investment thesis following the share price weakness over the year to date. The broker notes the business re-positioning has delivered the first round of capital management and surplus capital is expected to be deployed for growth.
Beyond strong growth in premium fuels, the broker considers the next leg of growth is less evident. Still, the risk/reward equation is attractive, with valuation support, and the broker upgrades to Buy from Hold. See also downgrade below.