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FN Arena Broker Call Headlines - 23 Nov 2012

Reported by FN Arena
Friday, November 23, 2012
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- WDS LIMITED

JP Morgan rates as Overweight (1) - has lowered full year guidance to reflect difficult conditions in the coal sector and this sees JP Morgan lower earnings estimates for the company. Price target is reduced to $0.63 from $0.80.

Coal seam gas activity levels remain strong and this offers opportunities for in the broker's view, so an Overweight rating is retained.

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- BILLABONG INTERNATIONAL LIMITED

UBS rates as Buy (1) - In response to press reports about Billabong mulling over a potential listing for its e-commerce operations, UBS sees this as yet another piece of evidence there is more value inside the retailer than the share market is willing to price in. It is for this reason the stockbroker has no problem sticking to its Buy rating.

UBS suspects Billabong is thinking about a similar set-up as did Fairfax with its New Zealand based Trade Me web service which would see a listing but while retaining a substantial equity stake. Still a long way off to find out whether this plan can actually be executed successfully, so UBS is not holding its breath.

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- YTC RESOURCES LIMITED

JP Morgan rates as Overweight (1) - TYC has reached a financing agreement with Glencore for the development of the Hera and Nymagee projects and to reflect this the broker makes minor changes to its model.

Price target increases to $0.76 from $0.73 and the broker retains an Overweight rating on valuation grounds.

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- LYNAS CORPORATION LIMITED

Macquarie rates as Upgrade to Outperform from Underperform (1) - It's been a long time coming but the first rare earth ore from WA has landed at the LAMP in Malaysia, ready to be fed in by month's end.

The broker has responded by increasing its target to 90c from 70c and upgrading Lynas to Outperform.

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- ANSELL LIMITED

UBS rates as Upgrade to Neutral from Sell (3) - Ansell's share price has met more sellers than buyers recently and this has prompted UBS analysts to have another look at their forecasts and assumptions. UBS seems pretty confident Ansell's interim result will meet expectations. This implies the stock no longer deserves a Sell rating. This has prompted the upgrade to Neutral.

Interestingly, UBS doesn't see much to get excited about but the company is trailing easy comparables and the stockbroker has adjusted its price target to $15.29 from $15.18 prior.

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- WOOLWORTHS LIMITED

BA-Merrill Lynch rates as Underperform, Low Risk (5) - Analysts at BA-ML have used Woolworths' AGM and EGM updates to once again reiterate their negative view. They line up all kinds of financial and operational metrics to show a deteriorating trend is what investors are missing, or not pricing in, which is the same end result.

The stockbroker sticks to its Underperform rating with a $22 price target. BA-ML is not enthusiastic about the Masters venture, arguing it is high risk. The analysts state Masters' losses are expected to increase in the short term. In addition, BA-ML thinks it is likely that partner Lowes will exercise its put option of its share to Woolworths.

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- GOODMAN FIELDER LIMITED

CIMB Securities rates as Outperform (1) - AGM commentary from Goodman Fielder showed retail conditions remain challenging but some prices rises would help offset this. Changes to its model see CIMB lift price target to $0.63 from $0.61.

The broker retains an Outperform rating.

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- AUSDRILL LIMITED

CIMB Securities rates as Downgrade to Neutral from Outperform (3) - Ausdrill has lowered earnings guidance for FY13 to reflect both customer specific and adverse market conditions and CIMB has adjusted forecasts accordingly. 

Price target is reduced to $2.47 from $4.60. While valuation is attractive delivery on earnings and evidence of de-gearing is needed for a re-rating in the broker's view. Rating downgraded to Neutral.

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18/12/2014 22:28Sydney, Australia. 18 December,2014
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