news 0931 [Dow Jones] STOCK CALL: Deutsche Bank downgrades embattled Multiplex
(MXG.AU) to Sell from Hold, slashes price target to A$2.83 from A$3.75 following
FY05 profit downgrade. Reckons new guidance has provided more questions than
answers; "We have adjusted our forecasts to reflect what we believe to be the
magnitude of the downgrades applicable, but now have relatively little
confidence in either FY06 estimates or MXG's ability to deliver meaningful
growth from this base." Stock set to resume trade today; before halt imposed
Friday was down 5 cents at A$3.26. Bids, asks depth data indicates to open at
A$2.51. (WES)
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0928 [Dow Jones] STOCK CALL: Goldman Sachs JBWere downgrades long-term
recommendation on Multiplex (MXG.AU) to Sell from Hold; keeps short-term at
Underperform after FY05 profit guidance cut, Wembley costs blow out. Broker says
MXG FY05 guidance "significantly worse than what the market expected" and
insufficient clarity on quality, composition of FY06 forecast. Broker says while
"very plausible long-term valuation scenarios" supportive of current stock
price, stock likely to be traded on worst-case scenario basis for some time yet.
MXG last A$3.26; to resume trading today. (MCM)
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0912 [Dow Jones] S&P/ASX 200 benchmark index set for quiet session, could be
overall sentiment boost from Multiplex (MXG.AU), which resumes trade after
Wembley cost blowouts and admissions. Merrill Lynch says profit cut and other
Wembley-linked problems are a "long way short of disaster," stock last A$3.26.
Index ended at 4132.7 Monday, gain of 16.3 points and near day's high 4133.6. No
overseas direction with Wall Street and London both closed. BHP (BHP.AU)
problems with Tintaya copper mine in Peru, shut by protestors, might be looming
issue for investors, though mine not major revenue earner. (IGP)
MXG
multiplex group
