JBH

Last week, global markets stumbled following reports that China was looking to impose controls to curb its rapidly growing economy and concerns that a soft landing for the US economy may be more difficult than first thought. In the background, the Australian reporting season continued its final week, here are analyst Macquarie Research Equities (MRE) observations and thoughts. The HY December 2006 aggregate earnings reported for the market printed 1.5 percentage points below analyst expectations versus those held at the start of this reporting season.

SB Citigroup have downgraded the JB Hi-Fi (JBH) stock to Hold from Buy, High risk and values the company at $4.51 per share. The broker has commented that it is taking a cautious outlook on consumer spending in the period leading towards Christmas, especially with interest rates moving higher. The analyst also notes that any cautiousness on the management's outlook statements may trigger a sell-off.

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.