Broker Watch: Latest upgrades, downgrades and market analysisJun...

Broker Watch: Latest upgrades, downgrades and market analysis
Jun 10 09:52
AFR staff


Here is a selection of broker reports, including upgrades and downgrades, of companies making the news:

MACQUARIE BANK
Broker: CSFB
Rating: Upgrades to OUTPERFORM from NEUTRAL
Price Target: Raises to $70 from $53
Comment: CSFB has upgraded its recommendation on Macquarie Bank to 'outperform' from 'neutral' and significantly increased its price target to $70 from $53. The broker argues that the globalisation of the infrastructure financing business is leading to a structural shift for Macquarie toward higher multiple annuity-type revenues from non-recurring earnings streams. "Macquarie is enjoying first mover advantage in the fast-emerging asset class of infrastructure," CSFB says.



TRANSURBAN GROUP
Broker: UBS
Rating: Unchanged at NEUTRAL1
Price Target: Raises to $7.61 form $6.96
Comment: UBS has raised its price target for Transurban Group to $7.61 from $6.96 citing the group's decision to adopt a new strategy to grow distributions at a steady rate and move to a more optimal gearing level. The broker says while the additional debt requires servicing and repayment, cash flows to equity are front-ended, which should generate a positive outcome for net present value.



JUBILEE MINES
Broker: Goldman Sachs JBWere
Rating: Downgrades to short-term MARKETPERFORM from OUTPERFORM
Base Valuation: $4.29
Upside Valuation: $6.19
Comment: While maintaining a positive view on the outlook for gold and nickel miner Jubilee Mines, GSJBW has cut its short-term recommendation on the stock to 'marketperform' from 'outperform', noting the stock has outperformed the wider market by about 75 per cent over the past year. It says much of the upside is now encapsulated in the share price. However, it sees two key risks to its recommendation change - further exploration success or a significant spike in the nickel price.