ASX MFG: Magellan joins Macquarie’s list of most earnings downgrades

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The global fund manager is the newest addition to the bank’s earnings table that tracks negative revisions to consensus earnings forecasts.

The Australian sharemarket has descended further into an earnings downgrade cycle, with more downgrades than upgrades, that saw Magellan Financial join Macquarie’s list of companies with the most negative revisions.

Despite Magellan being a new addition to the table, Macquarie has still upgraded its recommendation of the stock to neutral in its October market ratios note from a prior rating of underperform. The consumer discretionary sector more broadly has been a drag on the sharemarket’s overall performance, in what has also been a weak period for retail conglomerate Wesfarmers and gambling machine operator Aristocrat Leisure.

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