JP Morgan 16/07/2008 1 Overweight" $0.75 108.3% The announcement by Centro Properties ((CNP)) of the sale of a number of its US properties is a positive for the retail group in the broker's view as it shows there are buyers for US assets.
A selldown of some of its assets is still needed to improve its balance sheet but with the stock at a significant discount to its assessed value the broker retains its Overweight rating.
Credit Suisse 15/07/2008 3 Downgrade to Neutral from Outperform" $0.45 25.0% Credit Suisse analysts have cut their target for the securities to 45c from 58c as they come to the conclusion that their previous Outperform rating has been in synch with the securities outperforming.
However, the matter is a bit more complex than simply that as remodelling seems to have also cut their valuation, which explains why the target has fallen.
They reaffirm their belief that management will come up with some creative solutions and note their new valuation puts the stock on equal footing with US strip mall peers.
Macquarie 21/05/2008 5 Underperform " $1.00 177.8% On a stand-alone basis Centro Retail's result is not all too bad, the broker implies, but with debt refinancing and asset sales hanging over its head and little transparency on covenants the broker can do no more than recommend Underperform.
UBS 29/02/2008 1 Buy" $0.80 122.2% Operationally the group appears in reasonable shape but the broker notes the result was overshadowed by questions about contingent liabilities and the like.
While the group's hedge position is at some risk given Centro Properties ((CNP)) is the other side of the hedge the broker has retained its Buy rating post the result.
CNP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
