The broker wrap: cuts to Suncorp, Iluka

Founder of FNArena
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The number of recommendation downgrades yet again outnumbered the upgrades issued in the past week. Amidst a general slowing down in activity, the week past saw stockbrokers issue seven upgrades and 15 downgrades – so downgrades are in the lead once again.


As far as upgrades are concerned, analysts at Macquarie upgraded CFS Retail Property Trust (CFX) to Buy given recent share price underperformance since the full-year result in August. While the broker admits the risks still remain to the downside at Emporium and there is the likelihood of more negative news flow over the year ahead, the valuation looks pretty stable, said Macquarie. Deutsche Bank upgraded its call to Buy last month, but it was a sector relative move. The upgrade has pushed the stock into positive sentiment territory in the FNArena Database, now with two Buys, four Holds and a Sell.

JP Morgan upgraded Coca-Cola Amatil (CCL) to Neutral on shares that have consistently underperformed over the past six months. The broker noted the company has gone through a pretty intensive capex spend in the years past, but the end result is a more defendable earnings base. Deutsche Bank also changed its recommendation to Neutral last week, but in this case it was a downgrade from Buy, noting the company's latest trading update just wasn't good enough. The stock remains just in negative sentiment territory in the database, with one Buy, two Sells and five Holds.

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