The Australian share market continues to show a fairly consistent pattern as we move through the local reporting season: share prices continue to rise while stock analysts continue to issue more downgrades than upgrades.
The week past saw 10 upgrades being outnumbered by 33 downgrades. Nothing new as this has been the trend since the rally began in 2012.
On the way up
Bradken (BKN) had a very busy week last week, putting out an interim report with an upgraded guidance. Both Macquarie and Credit Suisse upgraded forecasts and their calls to Buy post the release, noting a strong result, a good contribution from Austin Engineering (ANG), a healthy order book, lower costs and a generally improved outlook. Conversely, Deutsche Bank downgraded its call to Hold from Buy given flat half-on-half revenue and a less than hoped for improvement in margins. Earnings forecasts were lifted. The changes leave the stock in positive sentiment territory in the database on four Buys, two Holds and one Sell.