CS in a buying mood?

Credit Suisse Lifts S&P/ASX 200 Year-End Target to 6,000 -- Market Talk
ASX 2005,448.5046.494 (0.86%)ASX real-time quotes as of 26 06 2014 02:14pm AEST

• Dow Jones
• 25 06 2014 03:28pm AEST

0528 GMT [Dow Jones] Credit Suisse lifts its S&P/ASX 200 year-end target to 6,000 from 5,600 as "de-equitisation" comes to Australia. "Investors will not have to buy any new Aussie equity this year," says CS strategists Hasan Tevfik and Damien Boey. "M&A has picked up, debt is the preferred form of finance and 21st Century Fox has de-listed. Limited, if any, net equity supply and continued solid demand promise to be positive for index levels." The strategists add that the lowest cost of debt in a generation and recovering cash flows should encourage companies to further retire equity via M&A and buybacks. "Companies that may benefit from the low cost of debt include M&A targets such as Myer (MYR.AU) andBeach Energy (BPT.AU), value enhancing acquirers such as carsales.com.au (CRZ.AU) and TPG Telecom (TPG.AU); and EPS accretive buy-backers such as CSL (CSL.AU). Index last down 0.6% at 5401.4. ([email protected]; Twitter: @DavidRogersWSJ)

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