FN Arena Broker Call Headlines - 3 Nov 2009

<WDC.AX> - WESTFIELD GROUP

BA-Merrill Lynch rates <WDC.AX> as Neutral, Low Risk - Comparative US mall funds posted strong enough quarterly results for the broker to feel positive about Westfield. Westfield is providing a good yield and very defensive earnings, the broker notes, but its defensiveness also means it is not highly leveraged to economic recovery. Neutral retained. More

<CTX.AX> - CALTEX AUSTRALIA LIMITED

Deutsche Bank rates <CTX.AX> as Hold - The broker has updated its refiner margins for Caltex after a mark-to-market of the Singapore Weighted Average Margin for last month and also for the rising AUD, which it notes also weighs on margins. The exercise sees FY09 EPS fall by 5.1%, while the price target slips 10c to $9.60. The Hold call is otherwise maintained. More

<DMP.AX> - DOMINO'S PIZZA ENTERPRISES LIMITED

RBS Australia rates <DMP.AX> as Upgrade to Buy from Hold - Target $5.24 (was $4.19). The broker notes FY10 will be the final year of step-up in royalty payments to Domino's Inc. and this means there will be economies of scale delivered from the European store rollout program in FY11 that in its view are not yet being priced into the stock. To reflect this the broker has lifted its earnings forecasts for the stock, the changes flowing through to an increase in price target. The stock offers value on the broker's numbers and so it upgrades to a Buy rating. More

<ASX.AX> - AUSTRALIAN STOCK EXCHANGE LIMITED

BA-Merrill Lynch rates <ASX.AX> as Buy, Medium Risk - The broker notes the value of turnover on the <ASX.AX> was up 15% in October from a year ago thanks to higher market capitalisation, with the SFE having the second best non-expiry month in the same period as interest rate interest returns. The broker expects the trend to continue, and notes <ASX.AX> shares are trading at 1.07x the average <ASX.AX> 200 index - the lowest level since 9/11 and 30% below average. Buy retained. More

<RIO.AX> - RIO TINTO LIMITED

Credit Suisse rates <RIO.AX> as Neutral - The company has held its annual investor seminar and the broker notes the major point of note was the intention to increase capex in an attempt to restore some of the group's growth focus. Comments suggest the iron ore joint venture should be finalised by the middle of next year and the broker notes management has indicated synergies from the venture could exceed expectations. Post the update the broker retains its Neutral rating. More

<CRG.AX> - CRANE GROUP LIMITED

JP Morgan rates <CRG.AX> as Neutral - Target $9.34 (was $9.79). Following revised guidance from management the broker has cut its earnings forecasts, the changes flowing through to a reduction in its price target. Post the changes the broker retains its Neutral rating on the stock. More

<CSL.AX> - CSL LIMITED

BA-Merrill Lynch rates <CSL.AX> as Buy, Medium Risk - The broker notes the key take-out from the Australian National Blood Authority's annual report is that Australians consume as much IVIG per capita as do Americans. The implication here is thus the US is not seeing an over-prescription of IVIG as some thought, meaning there remain significant growth opportunities in the European and Asian markets. More

<TAP.AX> - TAP OIL LIMITED

UBS rates <TAP.AX> as Neutral - With no Woollybutt production in the Sept quarter, the company delivered sales revenue that was 40% down on the previous quarter. Factoring in actuals, Varanus Island repair costs and Woollybutt dry dock costs, see UBS cutting its 2009 earnings forecasts by 157.5%, lifting 2010 by 81.1% and lowering 2011 by 2.8%. Target falls 4c to $1.14. More