- SONIC HEALTHCARE LIMITED
BA-Merrill Lynch rates as Buy, Medium Risk (1) - BA-ML notes the ACCC has asked for more market feedback with respect to Sonic's proposed acquisition of Healthscope's pathology assets, the issues being pricing power and service levels. While this suggests some uncertainty with respect to the proposed acquisition the broker continues to see value in Sonic and so retains a Buy rating. More
- FORGE GROUP LIMITED
Citi rates as Neutral (3) - Target $5.15 (was $7.25). The broker notes the company has pre-released indicative FY12 sales and earnings numbers, which have come in stronger than Citi was expecting and are well up on consensus estimates. The main problem the broker has is that margins have continued to soften, although Citi notes the the acquisition of the CTEC business had a hand in the issue. Earnings are trimmed on the weaker margins and the Neutral call is maintained. More
- BHP BILLITON LIMITED
Citi rates as Buy (1) - The broker notes the company has taken a US$2.84b impairment charge on US shale gas assets, which is pretty much what Citi was expecting. The broker blames weaker US gas prices and the shifting of drilling activities to more liquid rich fields. There are no changes to the Buy call, price target or forecasts on the news. More
- COLORPAK LIMITED
BA-Merrill Lynch rates as Buy, High Risk (1) - Full year earnings for Colorpak were better than BA-ML had forecast thanks largely to the contribution from recent acquisitions. Macro conditions remain a concern however, so the broker trims estimates through FY14. Restructuring of the business is ongoing and are crucial in the broker's view as the process will support earnings in the face of the tough macro environment. With the stock trading below valuation BA-ML retains a Buy rating. More
- FAIRFAX MEDIA LIMITED
RBS Australia rates as Buy (1) - Leading into the upcoming profit result season RBS Australia has made minor adjustments to models for Australian media stocks. For Fairfax price target falls to $1.04 from $1.10. The broker retains a Buy rating. More
- HILLS HOLDINGS LIMITED
Citi rates as Neutral (3) - Target $1.08 (was $1.12). The broker has trimmed its FY12-FY14 EPS forecasts by 9%-10% to adjust for minority interests post the company moving to 100% ownership of Fielders. The Neutral call is maintained. More
- TATTS GROUP LIMITED
BA-Merrill Lynch rates as Buy, Medium Risk (1) - Full year earnings guidance from Ta was better than BA-ML had forecast and the broker suggests trading strength should continue into the first half of 2013. The stock has good attributes for cycling through a difficult consumer backdrop according to BA-ML, so a Buy rating is retained. Price target is unchanged at $2.88. More
- GWA GROUP LIMITED
Citi rates as Sell (5) - Target $1.78 (was $1.79). The broker has trimmed its EPS forecasts by 6%-7% to reflect the new terms of the Q Technology deal, management's guidance and the broker's expectation for a softer than expected FY12 outcome. With tough conditions expected to prevail this year, the Sell call is maintained. More
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