Broker Recommendations Rundown

If you wish to use these broker recommendations for trading shares listed on the Australian Stock Exchange, it is highly recommended that you back up your analysis using fundamental or technical analysis or a combination of both before investing in any company.

UBS has a Neutral 2 recommendation for National Australia Bank (NAB) with a target of $35 per share.

UBS has downgraded their Buy 2 rating to a Neutral 2 recommendation for Newcrest Mining Limited (NCM) with a share price target of $25 which is based on a P/NPV multiple of 1.7x operating assets. Citigroup Investment Research (CIR) have maintained their Buy/High risk recommendation all the while lowering their share price target from $30.59 to $27.83. ABN Amro rates the Newcrest Mining Limited (NCM) stock as a Buy with a share price target of $24.92 from $32.13 and their valuation falling from $19.62 to $17.55

Macquarie Research Equities (MRE) released their banking sector recommendations recently. In order of preference together with their share price targets and their recommendation rating grouped with majors and regional banks:
MRE’s 12 month price targets – Major Banks

1. ANZ $28.20 Outperform Recommendation
2. CBA $46.50 Outperform Recommendation
3. NAB $36.30 Neutral Recommendation
4. WBC $23.75 Neutral Recommendation
5. SGB $30.00 Neutral Recommendation

MRE’s 12 month price targets – Regional Banks

1. ADB $13.55 Outperform Recommendation
2. BOQ $14.14 Neutral Recommendation
3. BEN $11.86 Underperform Recommendation

JP Morgan have rated the Alesco Corporation (ALS) stock as overweight.

ABN Amro have rated the Alumina (AWC) stock as a Buy, with stronger aluminum prices increasing the company's cashflows.

Credit Suisse have a Neutral rating for Caltex Australia (CTX) with the analysts noting that they expect refining margins to remain strong in the medium to long term.

Credit Suisse has upgraded their recommendation for the ABB Grain (ABB) stock to Outperform considering the stock price fall relative to the ASX200 index.

SB Citigroup have downgraded their rating for Excel Coal (EXL) from Buy, High Risk to Hold with their share price target falling from $10.15 to $8.62.

Macquarie have upgraded their recommendation for the MFS Limited (MFS) stock to Outperform with their share price target rising by 40 cents to $5.20.

Macquarie Research Equities (MRE) have noted an announced a takeover offer from ABC Learning Centres (ABS) for the country’s second largest listed childcare company, Hutchison (HCC). ABS bid is $1.50 per share for HCC, valuing the company at $108m inclusive of debt. They note that:

"ABS has a dominant market position, a superior product and a proven management team. The business is, however, positioned in an industry characterised by low investment returns. ABS’s offshore expansion strategy is necessary as the growth options in Australia are nearing an end.

Aspect Huntley have upgraded their recommendation for the Funtastic (FUN) stock to Buy from Accumulate.

SB Citigroup have rated the Gunns Limited (GNS) stock as Hold/High Risk with a share price target of $3.00 (was $3.15).

Macquarie Research Equities (MRE) retain their outperform recommendation for Dyno Nobel (DXL) with a 12 month share price target of $2.72.

Equity Strategy: Macquarie’s top stock recommendations
‘Pick of the Crop’ stocks are selected using Macquarie Research Analysts (MRE)’s Quant Alpha model combined with MRE analysts’ short term recommendations. The Alpha model combines a range of valuation, analyst sentiment and price momentum factors. The factors have been empirically derived and are designed to exploit market anomalies, usually based on behavioural biases. This is then cross referenced with MRE analysts’ short term recommendations.
S&P 100 ex Property
ANZ Australia & New Zealand Banking
AWC Alumina Limited
BHP BHP Billiton Limited
BNB Babcock & Brown Ltd
CBA Commonwealth Bank Of Aust.
LHG Lihir Gold Limited
MAP Macquarie Airports
OSH Oil Search Ltd
OST Onesteel Limited
RIN Rinker Group Limited
RIO Rio Tinto Limited
RMD Resmed Inc
SGM Sims Group Ltd
WOR WorleyParsons Ltd
S&P ex 100 ex Property
ABC Adelaide Brighton Limited
CAB Cabcharge Australia
CDR Commander Communications Ltd
COA Coates Hire Ltd
CXP Corporate Express
IGO Independence Group NL
IPL Incitec Pivot Ltd
IWF Integrated Group Limited
JBH JB Hi-Fi Ltd
JBM Jubilee Mines NL
KZL Kagara Zinc Ltd
MFS MFS Ltd
MMGCA Macquarie Media Group Ltd
NUF Nufarm Limited
PRG Programmed Maintenance Services
RCD Record Investments Ltd
SMX SMS Management & Technology Ltd
TRS The Reject Shop Limited
TSE Transfield Services Limited
WHG WHK Group Ltd
Property Trusts
CNP Centro Properties Group
GPT GPT Group
MOF Macquarie Office Trust