Now I know why? and :Broker watch: Latest upgrades, downgrades...

Now I know why? and :
Broker watch: Latest upgrades, downgrades and market analysis
May 03 11:44
Matthew McAdam and Richard Hemming.

COLES MYER
Broker: CSFB
Rating: Upgrades to OUTPERFORM from NEUTRAL
Price target: Decreases to $10.10 from $10.30
Comment: CSFB has decreased its 12-month price target for Coles Myer to $10.10 from $10.30 per share by incorporating mid-cycle valuations for its non-food businesses. But given the stock's recent weakness, the broker sees "improved value emerging" and has upgraded its rating to "outperform" from "neutral", saying the stock was "oversold".



ORICA
Broker: CSFB
Rating: Upgrades to OUTPERFORM from NEUTRAL
Price target: Decreases from $19.50 to $19.20
CSFB has decreased its target price to $19.20 from $19.50 per share but upgraded its recommendation for Orica to "outperform" following the company's interim result. The result was in line with CSFB's expectations and the broker says that while it can't see any positive news for the next six months, it believes "the recent share price reaction is overdone".




PUBLISHING & BROADCASTING
Broker: UBS
Rating: Upgrades to BUY 1 from NEUTRAL 1
Price: Unchanged at $16.30
Comment: Citing recent weakness in the casino and media group's share price, UBS has upgraded its rating on PBL to "buy 1" from "neutral 1", telling clients it expects the stock to return more than 10 per cent this year. The broker notes a large chunk of PBL's earnings are sourced from gaming and magazines "which tend to be fairly predictable". The broker believes much of the recent underperformance was the result of a slow start to the ratings season for its Nine Network. "Seven had a very strong start to the TV ratings season, dominating Monday, Tuesday and Thursday. However, Nine has won each of the past three weeks, winning Monday and Tuesday for the first time in week 18 for a season high ratings share of 39.8 per cent," UBS says.



WATTYL
Broker: Citigroup Smith Barney
Rating: Downgrades to SELL from HOLD
Price: Cuts to $1.65 from $3.28
Comment: Wattyl has officially re-entered turnaround mode, Citigroup Smith Barney says, following the announcement of another profit warning and the departure of it managing director on Monday. The broker says the revised forecast for a net profit of between $10-12 million in fiscal 2005 implies the group's Australian operations will record a breakeven result, or possibly a small loss, during the second half. Citigroup notes the earnings drop was blamed on falling demand and rising raw material costs, but it suspects the real reason was lost market share and an inventory de-stocking program at Wesfarmers' hardware chain Bunnings. "Maybe its time to realise that Wattyl is a commodity business, the brand is not as strong as Dulux and Taubmans, and you can't fight the cycle," it added. "There will come a time to buy Wattyl, but not now. Better to wait until a new CEO has been appointed and the usual write-offs/provisions have been made," the broker concludes, cutting its rating to "sell" from "hold".