UBS rates as Buy (1) - Target $2.20 (was $2.25). It was a soft 4Q, as expected, and the broker notes sales missed forecasts for the most part due to ongoing weakness in the Australian business.

While the broker continues to see value in the company's property book, it admits the near-term earnings uncertainty and the lack of prospects for some capital management won't endear the stock to many. Still, the Buy call is maintained on valuation grounds.

- LEIGHTON HOLDINGS LIMITED

JP Morgan rates as Neutral (3) - Target $19.72 (was $19.64). Interim earnings met previous guidance but JP Morgan notes weak operating cashflow is stretching the group's balance sheet.

Minor changes to forecasts mean a slight increase in price target. With gearing and Habtoor ghton Group remaining issues JP Morgan retains a Neutral rating.

- CHARTER HALL GROUP

Deutsche Bank rates as Downgrade to Hold from Buy (3) - Deutsche has adjusted assumptions across the A-REIT sector and the changes see price target for Charter Hall increase to $2.50 from $2.40.

On valuation grounds the broker downgrades to a Hold rating.

- ANSELL LIMITED

RBS Australia rates as Hold (3) - Ansell has acquired French glove maker Camasec for $118m which the broker sees as a positive deal. Accretion will kick in properly in FY14. is not expensive at present but with macro uncertainties and ever present cloud, the broker is sticking to Hold while increasing its target to $14.79 from $14.57.

- COCHLEAR LIMITED

RBS Australia rates as Hold (3) - After a lot of angst over potential market share loss from its product recall, Cochlear has underscored its brand strength with minimal loss and a largely in-line profit result. Revenues were better than expected and no further recall expenses have been booked, allowing for a pleasing 4% increase in dividend, the broker notes.

Competition will continue to pressure nevertheless, the broker suggests, forcing increased spending on sales operations and a focus on technological progress. The broker retains Hold on a full valuation while trimming its target to $59.97 from $60.58.

- HASTINGS DIVERSIFIED UTILITIES FUND

UBS rates as Neutral (3) - The independent expert has called the takeover bid fair and reasonable and the board has unsurprisingly maintained its support for the offer, saying it represents a better outcome than internalisation. Neutral call maintained.

- JB HI-FI LIMITED

Citi rates as Neutral (3) - Ahead of the FY report, the broker notes it is expecting a big drop in profit and margins given the competitive intensity within the company's key categories, with margins also likely to fall further on new stores, which tend to have lower sales productivity than existing stores.

Sell call, price target and forecasts maintained.

- APN NEWS & MEDIA LIMITED

Citi rates as Neutral (3) - Target $0.50 (was $0.84).The broker has cut its FY13-14 EPS forecasts on the back of weaker revenue growth at the group's print division, while a weakening balance sheet raises the risk of a potential capital raising and sees the broker take an even bigger chunk from the price target.

Neutral call maintained.

Keep reading - next article

Aust stocks lower at noon

25/05/2013 17:42Sydney, Australia. 25 May,2013

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