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FN Arena Broker Call Headlines - 18 Jan 2013

Reported by FN Arena
Friday, January 18, 2013
Topics in this article:
Iluka Resources,Macquarie,Nufarm,Santos,Wesfarmers,Westfield,Woolworths,Blackthorn Resources Limited,Qrxpharma Ltd
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- WESTFIELD GROUP

JP Morgan rates as Neutral (3) - Westfield is being innovative, according to JP Morgan. The Croydon joint venture is seen adding 7% to the company's development pipeline and this has increased 25% in the last three months with some unexpected wins. More of this sort of stuff and the broker suspects it may upgrade the earnings potential again.

The price target of $10.66 and Neutral recommendation are retained.

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- COMPUTERSHARE LIMITED

Credit Suisse rates as Outperform (1) - Target $11.15 (was $9.60). The broker has revised its number on a marking to market exercise and to account for updated M&A assumptions. FY13 EPS is unchanged, but FY14-15 are up 1.6% and 4.3%, helped by updated currency assumptions. DPS forecasts are also pushed a bit higher.

And with the broker expecting a significant pickup in corporate activity over the next few years, the Outperform call is easily maintained, with CS noting corporate activities is the company's biggest earnings driver.  

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- SANTOS LIMITED

Macquarie rates as Outperform (1) - Santos' production update missed expectations on both revenues and production numbers, but nothing dramatic, report analysts at Macquarie. The good news came in the form of a 10% increase in overall 2012 production and gas realisations being up 9% on last year. These are the underlying trends that should remain in place and underpin a re-rating at some stage, suggest the analysts.

On the other hand, Macquarie analysts point out short term earnings estimates across the market may come under pressure as the production report suggests production costs are circa 8% ahead of implicit guidance. Further cuts to capex suggests slowing ramp up at projects under development, they add.

Outperform rating retained as by year end, so projects Macquarie, there should be a lot less question marks surrounding Santos' outlook.

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- NUFARM LIMITED

Deutsche Bank rates as Sell (5) - Deutsche Bank analysts have updated their currency forecasts and this has had a mild negative impact on earnings estimates for exporters in Australia.  AUD/USD is now projected to remain above parity for the two years ahead.

Sell rating is related to premium valuation for the shares. Target remains at $4.40.

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- ILUKA RESOURCES LIMITED

BA-Merrill Lynch rates as Buy (1) - BA-ML sees the glass half full, with no surprises and no further negative news in the production report. Nevertheless, so far there is no evidence of improved conditions and a stabilisation in zircon pricing is necessary to stimulate demand, according to the broker.

The Buy rating and price target of $10.70 are unchanged.

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- WESFARMERS LIMITED

JP Morgan rates as Downgrade to Underweight from Neutral (5) - After a strong share price performance JP Morgan has downgraded the stock to Underweight from Neutral. The share price is at a significant premium to the broker's discounted cash flow valuation ($32.10) and it prefers Woolworths ((WOW)) in the retail sector.

The company's investment thesis remains strong and JPM sees no imminent catalysts on the downside. It just doesn't find it attractive at current levels.

The price target has been raised to $34.45 from $31.93.

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- BLACKTHORN RESOURCES LIMITED

UBS rates as Buy (1) - Blackthorn Resources has released further assay results from the Kitumba resource drilling. UBS sees Kitumba as a significant deposit and expects updates in the first half will expand both the overall resource and the high grade core.   The price target and Buy rating are unchanged.

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- QRXPHARMA LTD

JP Morgan rates as Overweight (1) - JP Morgan has raised the price target to $1.03 from 98c and maintained the Overweight recommendation.

 has clarified steps necessary for US FDA approval of MoxDuo-IR and the broker sees this as a positive development, providing more certainty on the way forward. 

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24/09/2014 00:22Sydney, Australia. 24 September,2014
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