Changes to stockbroker ratings in the past week
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.