Macquarie has downgraded ANZ from Outperform to Neutral today after cutting its forecast earnings for FY14 - 15. The 3.5% cut was prompted by pressure on margins in FY14 due to forex sensitivity and a shift in profit mix toward lower margin products. These additional risks are due to the bank's strategy of pursuing Asian growth, which the broker believes is a sound long-term strategy. However, Macquarie recommends investors sit on the sidelines whilst the adjustments come through, and hence downgraded the bank to Neutral.
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