Macquarie out with a bullish note this morning on the ‘reflation trade’ a theme MM has been talking about for a while. They say Investors should continue to position for reflation this year, as the $1.9 trillion U.S. stimulus package plus a surge in consumer spending should support robust economic activity. They go onto say that rising bond yields should continue to drive a rotation into value like financials. They have added Janus Henderson (JHG) plus QBE & IAG to their model while they also upweighted WBC, ANZ & Suncorp.
To make way, they removed CSL, Spark Infrastructure (SKI) and reduced James Hardie (JHX). Additionally, they added positions in Qantas (QAN) and Flight Centre (FLT) plus Woodside (WPL) and Origin (ORG) for energy, they removed FMG and RIO and added Mineral Resources (MIN) and Oz Minerals (OZL).
Clearly some differences relative to MM views on stocks but that’s what makes a market!
• Flight Centre Cut to Underweight at Morgan Stanley; PT A$17.50
• Qantas Raised to Buy at Citi; PT A$6.14
• Qantas Raised to Outperform at Macquarie; PT A$6.35
• Ridley Raised to Outperform at Credit Suisse; PT A$1.15
Qantas (QAN) upgraded by both Citi and Macquarie today, QAN added +3.77% today to close at $5.50
