Quick Australian Stock Tips

A compilation of updates by brokers:

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.

Commonwealth Bank (CBA) Shares Recommendation

SB Citigroup has upgraded their rating for the Commonwealth Bank (CBA) stock to Buy from a Hold, Medium Risk recommendation with a share price target of $46.

Commonwealth Bank of Australia (CBA) Share Price Tip

Macquarie has rated the Commonwealth Bank of Australia (CBA) stock as Outperform with a 12 month share price target of $47.60. Macquarie Research Equities (MRE) has found that A change in the fee structure will actually benefit the bank's profitability, and that is in stark contrast to similar initiatives at Westpac and St George. Commonwealth Bank remains the broker's second pick in the sector. Commonwealth Bank of Australia is listed on the Australian Stock Exchange (ASX) under stock code CBA. Check your charts!

Australian Banking Sector Stock Tips

Macquarie Research Equities (MRE) have reviewed the recent bank sector performance after the end of the recent banking reporting season. Within the banking sector, MRE continues to prefer ANZ (12 month share price target of $28.75) and CBA (12 month share price target of $47.60) given solid revenue growth and the capacity to look to cost opportunities should conditions slow (rather than reverting to cost management just to deliver competitive growth in the current strong environment).

Stock Tip: Shares that will Benefit from the Australian Budget

Last week the Australian government handed down their 2006-07 federal budget. Macquarie Research Equities (MRE) notes that "The centre piece of the Budget was the personal income tax cuts which were more widespread and extensive than the financial markets had been anticipating. This will inevitably provoke fears that interest rates may have to rise in order to offset the fiscal stimulus.
The key initiatives announced in the Budget that have notable implications for the Australian listed market are as follows:
- Reductions in the tax rates on personal income as well as increases to the thresholds for each tax rate;
- Accelerating the depreciation allowance for eligible business investment;
- Abolition of the Reasonable Benefit Limit (RBL) and age based contribution limits, and the elimination of tax of benefits paid to retires from taxed superannuation funds."
Here are some Australian listed stocks that MRE believes that will benefit from the budget:

Winners and Losers from the Interest Rate Rise

We look at who wins and loses from last weeks' interest rate rise.

UBS: MRE: CBA Recommendation

UBS has a Neutral 1 recommendation for CBA with a price target of $43.50. On the other hand Macquarie Research Equities (MRE) have increased their 12 month price target for CBA to $47.60.

UBS: MRE: Commonwealth Bank of Australia (CBA) Broker Recommendations

UBS states that CBA is "not cheap". UBS has a Neutral 1 recommendation on the Commonwealth Bank of Australia (CBA) with a price target of $43.50. According to UBS, CBA is trading at PE of 14x and yield of 5.2%. Meanwhile MRE (Macquarie Research Equities) has a 12 month price target of $45.25 for CBA and maintains a Neutral recommendation. Let's see where the new CEO Ralph Norris and his team can show us in the future.

Commonwealth Bank: CBA: Shorting Opportunity

The broker ABN Amro has placed short-term trading Sell recommendations on both Commonwealth Bank (CBA) but on a bittersweet note: still rates the stock as a long term hold. ABN Amro reckons that the short-term risk/reward has now moved to the negative side as the stock is trading at a significant premium to its valuation of $39.59. Perhaps a shorting opportunity for active traders?

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