UBS rates as Sell (5) - After having a good look around the market, the broker thinks the company's market share is continuing to slip, with more business heading back to rival, Advanced Bionics.

However, while the broker admits a continued run of market share loss would certainly raise questions about the premium at which the stock trades, it notes current trend fits well within its forecasts. Sell call, price target and forecasts are maintained.

- DOWNER EDI LIMITED

Citi rates as Buy (1) - Target $4.66 (was $5.03). The broker notes ner has done a deal with its locomotive manufacturer that will see all the trains sold by ner in Australia manufactured in cheaper offshore facilities. Citi notes ner has made the move to counter the threat of low cost rail competition.

But now that ner's in the discount train business, the broker estimates the company's Rail division may see earnings fall by 15-20% over the medium term.

There are minor cuts to forecasts and the broker notes the drop in price target is due to a pull back in peer multiples. Buy call maintained.

- KENTOR GOLD LIMITED

RBS Australia rates as Buy (1) - Target $1.21 (was $2.34). The broker has made some revisions to its sum of the part valuation now that it expects development at the company's 80% held Andash will be postponed into 2013 given looming Kyrgyzstan government elections in September.

However, RBS does see the valuation increasing after more exploration work is done and resource estimates are better defined upgraded. The broker also has high hopes for the Jervois project, with current drilling also expected to increase the resource estimate by year's end, while RBS also thinks the company's Murchison gold project will eventually exceed production forecasts. Buy call maintained.

- TEN NETWORK HOLDINGS LIMITED

Citi rates as Neutral (3) - Target $0.57 (was $0.76). The broker has revised its forecasts and reviewed its investment case post the recent institutional capital raising.

The balance sheet looks good now, says Citi, but adjusting for the company's cost guidance, ad revenues and the capital raising see FY12-14 EPS forecasts cut by 71%, 52% and 33%, with the price target following earnings lower.

Now it's all about execution says Citi, who is admittedly optimistic. However, the broker notes current forecasts are already pricing in this optimism at current levels, so the Neutral call is maintained.

- TOLL HOLDINGS LIMITED

Credit Suisse rates as Upgrade to Outperform from Neutral (1) - Target $4.80 (was $5.10). The recent fall in the share price combined with the recent Asia tour has prompted the broker to take another look at its forecasts. The new look sees forecast earnings cut by of an average 6.6% over the next few years, which sees a lower valuation and thus price target.

However, the recent share price fall also encourages the broker to upgrade its recommendation to Outperform from Neutral on valuation grounds, with the broker also thinking the company is well positioned for when the cycle turns, for Asian growth and to benefit from a push back to logistics outsourcing.

Yet despite the new Outperform call, the broker cautions against undue optimism as it can't see any catalysts in the short term, thus it also can't see l outperforming against other names in the sector.

- PAPERLINX LIMITED

JP Morgan rates as Underweight (5) - Target $0.06 (was $0.08). Despite asset sales and restructuring benefits J Morgan views the increase in working capital as a concern as PaperlinX remains behind competitors in terms of industry restructuring.

Changes to forecasts see the broker lower its price target. With the balance sheet still under pressure JP Morgan retains an Underweight rating on the stock.

- NEWS CORPORATION

BA-Merrill Lynch rates as Buy (1) - Target US$25.00. BA-ML notes there is speculation News is considering a split/spin-off for its Publishing business, a move the broker suggests would shine a better light on the higher growth Entertainment businesses.

BA-ML continues to see upside from current levels and reiterates a Buy rating on the stock.

- WOODSIDE PETROLEUM LIMITED

JP Morgan rates as Overweight (1) - JP Morgan has revised oil price forecasts lower and the changes impact on earnings and price targets across the sector.

For Woodside the broker's target falls to $45.84 from $46.82 given changes to forecasts. There is no change in JP Morgan's Overweight rating.

Keep reading - next article

Aust stocks weaker on growth forecast

21/05/2013 23:28Sydney, Australia. 21 May,2013

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