DJS

David Jones (DJS) has a maintained Neutral recommendation on the company shares with a 12 month price target of $4.23 from Australian stock analyst Macquarie Research Equities.

David Jones (DJS): There’s No Other Store Like David Jones

Sharemarket analyst Macquarie Research Equities have provided a 2007/2008 Australian Budget Impact statement. Investors who had been eagerly awaiting the release of the 2007-2008 Budget were last night greeted with a host of initiatives that included a significant boost to household disposable income.

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.

Macquarie Research Equities have retained their Outperform recommendation for the David Jones (DJS) with an increased share price target of $3.20. The company remains as the analysts' preferred emerging leader retail exposure.

David Jones Limited is listed on the Australian Stock Exchange (ASX) under stock code DJS. You can view their investor website here. The primary principal activity of the company is in the operation of department stores. The company was publicly listed on the 27th November, 1995. Check your charts!

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:

Macquarie Research Equities (MRE) has noted that about 65% of companies now having reported their profit results to the market. Stocks in the ASX100 have recorded 22 positive surprises and 9 negative surprises for the reporting season to date. The Ex100 was more volatile and reported 29 positive and 28 negative surprises.