Changes to stockbroker ratings in the past week
In line with a visible improvement in general market sentiment, stockbrokers and investment bankers in Australia zoomed in on all the market positives during the week past. Some strategists retain a cautious approach as earnings growth in Australia has not yet appeared on their radar, while the local annual general meeting (AGM) season might well deliver a few booby traps, they warn.
With AGM season under way, the past week has seen a number of updates with respect to outlook commentary from companies, which have prompted changes to ratings by the eight brokers in the FNArena database. A total of eight stocks received upgrades while 20 were downgraded, total Buy ratings now standing at 43.63%.
Among those stocks upgraded was Bank of Queensland (BOQ), RBS Australia moving to Buy and Citi to Neutral after the bank's full year profit result. For Citi, the result offered some greater comfort with respect to bad debts, while RBS expects new management and strategy can boost revenue growth and returns in the not too distant future.