recommendations for sgn

12-Feb-10 Credit Suisse
Post the group's full year result the broker has lifted its earnings estimates by around 5% through to FY12, though the changes don't impact on its price target on the stock.
As the company offers a relatively pure play on an advertising recovery in Australia the broker retains its Outperform rating, supported by its estimation the stock is trading at a significant discount to the average multiples of the domestic media sector and its global agency peers.
Outperform

12-Feb-10 Macquarie
Full year earnings were broadly in line with the broker's forecast, with margins holding well, debt reduction and solid cash flow being the highlights of the result.
Post the result the broker has made minor increases to its earnings estimates and while there are no obvious short-term catalysts for the stock it sees enough value to maintain is Outperform rating.
Outperform

12-Feb-10 RBS Australia
Target $0.82 (was $0.76). Earnings of $33m for the year met the broker's forecast and with management guiding to double-digit earnings growth for the full year it has lifted its forecasts and as a result its price target.
While the stock is on a slightly lower multiple than global listed agency peers the broker sees greater short-term upside in stocks more directly exposed to a recovery in advertising markets and so it retains its Hold rating.
Hold