credit suisse

0914 [Dow Jones] STOCK CALL: Credit Suisse raises Boral (BLD.AU) to Neutral from Underperform and 12-month target price to A$6.60 from A$6.30 after 1H net down 10% at A$132.4 million was "modestly above" Boral's guidance of a drop of 15%, with shares yesterday rising 7.5% to A$6.01. "The positive share price reaction we see as a function of short-covering and relief surrounding the potential for another downgrade," CS says. "Whilst we see the stock as inexpensive on a mid-cycle view, key macro drivers continue to place pressure on near-term earnings. No quick turnaround in Boral's end markets is anticipated. Australian residential is not improving; the U.S. is getting worse." Boosts profit forecast for FY08 by 0.3% to A$241.7 million, for FY09 by 3.7% to A$287.7 million and FY10 by 5.6% to A$358.3 million. (ABH)