STOCK PRICE FORECASTING – AUSTRALIA

Companies need to come up with growth strategies

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 13-May-16

Many Australian-listed companies have prioritised dividend yields in recent years, rather than investing in growth strategies. However, Macquarie Securities’ Jason Todd believes that investors are poised to reward companies that pursue growth via strategies such as acquisitions and capital expenditure. He identifies a number of stocks that could benefit from a growth strategy, including Transurban Group, Wesfarmers, Amcor, Carsales.com, CSL and Orora.

CORPORATES
MACQUARIE SECURITIES PTY LTD, TRANSURBAN GROUP LIMITED – ASX TCL, WESFARMERS LIMITED – ASX WES, AMCOR LIMITED – ASX AMC, CARSALES.COM LIMITED – ASX CAR, CSL LIMITED – ASX CSL, ORORA LIMITED – ASX ORA, ASCIANO LIMITED – ASX AIO, ASX LIMITED – ASX ASX, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SEEK LIMITED – ASX SEK, INCITEC PIVOT LIMITED – ASX IPL, TREASURY WINE ESTATES LIMITED – ASX TWE, RAMSAY HEALTH CARE LIMITED – ASX RHC

Investors to get lead on smart play for May

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 3-May-16

The Australian sharemarket gained 3.3 per cent in April 2016, but historical analysis shows that it has lost ground in the month of May in six of the last eleven years. A number of factors may influence the direction of the sharemarket in May, including the release of interim financial results in the banking sector, the outlook for commodity prices and the outcome of the Reserve Bank’s monthly monetary policy meeting.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S ASX 200 INDEX, RIVKIN SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WATERMARK FUNDS MANAGEMENT PTY LTD

Analysts tip Nine shares to recover

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Original article by Max Mason
The Sydney Morning Herald – Page: 23 : 7-Apr-16

Nine Entertainment Company’s share price closed 2.2 per cent higher at $A1.18 on 6 April 2016. The stock had shed 23.7 per cent in the previous trading session, in response to a sharp fall in earnings for the third quarter of 2015-16. Nine was hit by disappointing ratings, but some media buyers expect its performance to improve with several popular programs set to return shortly. Meanwhile, UBS and Deutsche Bank analysts have "buy" recommendations on the stock.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, SMI MEDIA INCORPORATED, OZTAM PTY LTD

Markets not worried about an early election

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Original article by Stephen Cauchi
The Australian Financial Review – Page: Online : 22-Mar-16

Matt Sherwood of Perpetual does not expect the 2016 federal election to have much impact on the Australian sharemarket. He adds that policies such as high taxes and high government spending are likely to have the biggest adverse effect on the market. Meanwhile, David Bassanese of BetaShares says the construction sector will benefit if the Federal Government succeeds in its bid to increase regulation of the industry, while the housing sector will face a less severe crackdown on negative gearing if it is returned to office.

CORPORATES
PERPETUAL INVESTMENTS, BETASHARES CAPITAL LIMITED, BORAL LIMITED – ASX BLD, MONADELPHOUS GROUP LIMITED – ASX MND, MIRVAC GROUP – ASX MGR, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Fortescue shrugs off ratings hit

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Original article by Paul Garvey
The Australian – Page: 20 : 16-Mar-16

Shares in Fortescue Metals Group closed just 1.55 per cent lower on 15 March 2016, following a decision by Moody’s to downgrade the iron ore producer’s credit rating. In contrast, BHP Billiton and Rio Tinto shares both fell by 3.4 per cent. Meanwhile, Morgan Stanley has reduced its share price target for Fortescue from $A2.10 to $A1.90 and downgraded its recommendation on the stock to "underweight".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Aussie tests US76c as central banks ponder

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 14-Mar-16

Market watchers expect Australia’s benchmark S&P/ASX 200 to gain 0.8 per cent when trading resumes on 14 March 2016. The market is likely to benefit from a positive lead from overseas bourses and encouraging economic data from China. Investors will also be awaiting the outcome of the monetary policy meetings of the US and Japanese central banks in coming days, as well as the release of the latest jobs data in Australia.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, EUROPEAN CENTRAL BANK, CREDIT SUISSE (AUSTRALIA) LIMITED, EURO STOXX 50 INDEX, ROUBINI GLOBAL ECONOMICS LLC, PEOPLE’S BANK OF CHINA, BLOOMBERG LP

Soaring BHP still has room to run

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 8-Mar-16

A rebound in the iron ore price prompted renewed investor support for BHP Billiton, Rio Tinto and Fortescue Metals Group on 7 March 2016. BHP shares closed 4.98 per cent higher at $A18.55, compared with $A15.57 one week earlier. Shaw & Partners and UBS are the most bullish about the outlook for BHP, with 12-month share price targets of $A27 and $A22 respectively. In contrast, JP Morgan has a share price target of just $A13.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE BANK LIMITED – ASX MBL, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD, CLSA AUSTRALIA PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CLARKSONS PLATOU, ROYAL BANK OF CANADA, BARCLAYS BANK PLC, JEFFERIES AND COMPANY, STANDARD BANK LONDON LIMITED, SBG SECURITIES, MORGAN STANLEY AND COMPANY INCORPORATED, SAMARCO MINERACAO SA, VALE SA

Resources uncertainty keeps ASX below 5000

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 33 : 25-Feb-16

Australia’s benchmark S&P/ASX 200 Index has failed to remain above the 5,000-point level so far in February 2016. The local market has been weighed down by continued weakness in the resources sector, while Julian Beaumont of Bennelong Australian Equity Partners adds that the market is likely to remain range-bound until concerns about the banking sector are alleviated. Meanwhile, Marcus Padley says any market rebound will be driven by an upturn in commodity prices.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, PENGANA GLOBAL RESOURCES FUND, BHP BILLITON LIMITED – ASX BHP, UNITED STATES. FEDERAL RESERVE BOARD

RBC picks BHP Billiton over Rio Tinto

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Original article by Amanda Saunders
The Australian Financial Review – Page: 30 : 11-Feb-16

Paul Hissey of RBC Capital has a share price target of $A15 on BHP Billiton, whose shares are trading at around $A15.67 at present. The analyst also has a "sector perform" rating on the resources giant, and forecasts that BHP will reduce its dividend by 75 per cent when its 2015-16 interim results are released later in February 2016. Meanwhile, Hissey has a share price target of $A37 and an "underperform" rating on Rio Tinto, whose stock is trading at $A41.53.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, RBC CAPITAL MARKETS, GLENCORE PLC

Resources sector delivers top stock picks for the bold

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 29-Jan-16

Credit Suisse has identified Kula Gold as the Australian-listed stock that it expects to perform the best in 2016, forecasting a return of 362 per cent. This based on an analysis of 180 stocks. The other five stocks that Credit Suisse expects to achieve the highest returns for the calendar year are Altona Mining, WorleyParsons, Whitehaven Coal, Bradken and Senex Energy. Meanwhile, Brambles and Evolution Mining are among the stocks that are tipped to underperform.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, KULA GOLD LIMITED – ASX KGD, ALTONA MINING LIMITED – ASX AOH, WORLEYPARSONS LIMITED – ASX WOR, WHITEHAVEN COAL LIMITED – ASX WHC, BRADKEN LIMITED – ASX BKN, SENEX ENERGY LIMITED – ASX SXY, BRAMBLES LIMITED – ASX BXB, EVOLUTION MINING LIMITED – ASX EVN, PACIFIC ROAD CAPITAL MANAGEMENT PTY LTD, FRANKLIN TEMPLETON ASSET MANAGEMENT LIMITED, OZ MINERALS LIMITED – ASX OZL, TRANSURBAN GROUP LIMITED – ASX TCL, PACIFIC EQUITY PARTNERS PTY LTD, BAIN CAPITAL LLC