David Jones (DJS) Stock Recommendation

Macquarie Research Equities (MRE) has maintained their Outperform recommendation for the David Jones (DJS) stock with a 12 month share price target of $3.65. Following the bullish FY06 result, which beat market expectations lifted the share price by 5 percent. DJS directors declared a final dividend of 9cps taking the payout for the year to 16cps. Stock analysts MRE have lifted their FY07 and FY08 Earnings Per Share (EPS) forecasts by 3 percent. MRE believes that the stock is fully valued for the near-term but their Outperform recommendation remains for the medium term. David Jones (DJS) is one of MRE's preferred retail exposures. "A 130 basis point improvement in department store EBIT margins was the key driver of the result. The margin improvement reflects the success of the brand and product differentiation strategy, management’s good read of the retail cycle and its tight control of inventory through the softer 1H06 sales environment, and the benefits of the ongoing cost efficiency program."

David Jones Limited is listed on the Australian Stock Exchange (ASX) under stock code DJS. You can view their investor website here. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. A previous David Jones (DJS) share recommendation. Check your charts and good luck with your share trading!