The broker wrap: RMD, MQA and CDD

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Changes to stockbroker ratings in the past week

A total of seven stocks were downgraded last week, while five enjoyed upgrades. Total Buy ratings in the FNArena database now stand at 44.00% versus 44.76% the week prior.

Upgrades

We’ll lead off this week’s proceedings with Cardno (CDD), which was upgraded to Buy by RBS. The broker noted that the share price has dropped 18% since peaking in August after releasing its full-year result, with current levels now seen offering quite a good buying opportunity. The stock enjoys two Buys and a Neutral in the FNArena Database. Macquarie is the broker sitting on Neutral, saying back in mid-August that shares were too dear. Well, according to RBS, they aren't any more.

Next on our upgrade list is Queensland-based IT services company Data#3 (DTL). Again, the benefactor is RBS, with the broker lifting its call to Buy after noting the share price has dropped nearly 20% in the past two months. The broker thinks the market is being a bit too negative about the company's outlook and not paying enough attention to the 7.2% fully franked yield. The stock is only thinly covered by Australian major brokers, enjoying just one straight Buy in the FNArena database.

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