Citi rates as Buy, High Risk (1) - In Citi's view the recent approval of a 10-year offtake agreement moves the Boikarabelo project closer to fruition, but at pent only value for Stage 1 is being assumed. This means changes to forecasts and sees Citi cut its price target to $0.60 from $1.40.

Funding is likely to be split between debt and equity and an update on this is likely before the end of the year in the broker's view. A Buy rating is retained.

- COCHLEAR LIMITED

UBS rates as Sell (5) - Despite some issues with the data, the broker notes that CI500 device failure rates remained steady in May and June. Otherwise, the broker notes this issue is still doing harm to the company's reputation, with UBS seeing significant risk to sales growth.

With the issues at hand unsupportive of the premium at which shares trade, the Sell call is maintained.

- BEACH ENERGY LIMITED

JP Morgan rates as Underweight (5) - Preliminary flow data from the Encounter 1 well was indicative of an extensive gas play in the broker's view, though further drilling in coming months is needed for confirmation.

The share price reflects the value of Beach's base business in JP Morgan's view but relative value is expensive, so an Underweight rating is retained.

- NATIONAL AUSTRALIA BANK LIMITED

JP Morgan rates as Underweight (5) - JP Morgan notes operating conditions in the UK market remain weak and sees this is offering risk in relation to provisioning outcomes for in that market.

This justifies a cautious stance on the stock in the broker's view, so an Underweight rating is reiterated.

- NEXTDC LIMITED

Citi rates as Buy, High Risk - Initiation of Coverage (1) - Citi initiates on NEXTDC with a Buy rating, based on the expectation of solid earnings growth from strong growth in the use of smartphones/tablets and the potential for the company to be the first independent data centre provider with a national presence.

Operating leverage for the group could be material in the view of Citi, especially as the national expansion strategy is rolled out.

- CSR LIMITED

JP Morgan rates as Overweight (1) - In recent months the share price has moved in line with aluminium prices and given recent weakness in the price of the metal the broker has lowered earnings estimates for the company.

Price target falls to $1.80 from $2.25. At current levels the market is ascribing zero value to the aluminium business of and as this appears overdone in the view of JP Morgan an Overweight rating is retained.

- CHALLENGER LIMITED

Citi rates as Neutral (3) - A marking-to-market sees Citi adjust earnings estimates for Challenger but higher capital intensity assumptions drive a cut in price target to $3.50 from $4.40.

While the upcoming profit result should be solid the broker retains a Neutral rating on the stock.

- SILEX SYSTEMS LIMITED

RBS Australia rates as Buy (1) - The broker notes the US Nuclear Regulatory Commission has scheduled a public hearing for this week, with a decision about the future of a planned SILEX Laser Uranium Enrichment Plant expected to be made by the end of August.

The broker is confident of a go-ahead and expects the share price will re-rate in a big way in the months ahead. The Buy call, price target and forecasts are maintained.

Keep reading - next article

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23/05/2013 09:08Sydney, Australia. 23 May,2013

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