BROKER MOVES
Good Morning Gents, You include Broker Moves in your Match Out reports. I find some of them to be quite surprising, to say the least. Do you know what their time horizon is for these recommendations?
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Answer
Hi David,
A brokers price target is always a 12-month price target. The call is generally ‘until they amend it’, with analysts updating numbers at least twice a year (after each set of results), and often in between with quarterlies, trading updates, left field events and so forth.
We certainly don’t agree with all of the “Broker Moves” we report but that’s by definition what makes a market, one such move came from UBS this week:
- They downgraded ANZ to a sell while at the same time seeing significant long-term optionality, especially if retail banking turns a corner.
As the saying goes “the devils in the detail’ and interestingly in the case of ANZ its rallied strongly after the initial sell off post downgrade.
