FN Arena Broker Call Headlines - 4 Nov 2009

<WAN.AX> - WESTERN AUSTRALIAN NEWSPAPERS HOLDINGS LIMITED

RBS Australia rates <WAN.AX> as Hold - While first quarter earnings were down 22%, the broker notes the rate of decline in advertising is finally slowing as trends turn more positive. While exposure to the WA economy should deliver long-term growth, the broker points out, it also notes the stock is trading at a premium to peers. As such, the broker likes Fairfax ((FXJ)) and APN News & Media ((APN)) better as they are cheaper ways to play a turnaround in advertising. More

<GPT.AX> - GPT

Macquarie rates <GPT.AX> as Downgrade to Underperform from Neutral - Macquarie analysts have reviewed the listed property sector in Australia. The analysts have turned more positive on where cap rates and property valuations will settle, and this has had a positive effect on views for individual securities in the sector. However, in terms of upgrades and downgrades of ratings the end score is two against two. <GPT.AX> was downgraded to Underperform. More

<FKP.AX> - FKP PROPERTY GROUP

Macquarie rates <FKP.AX> as Downgrade to Underperform from Neutral - Macquarie analysts have reviewed the listed property sector in Australia. The analysts have turned more positive on where cap rates and property valuations will settle, and this has had a positive effect on views for individual securities in the sector. However, in terms of upgrades and downgrades of ratings the end score is two against two. The downgrade to Underperform for <FKP.AX> negates the upgrade made less than three months ago. More

<DML.AX> - DISCOVERY METALS LIMITED

RBS Australia rates <DML.AX> as Buy - Target $0.70 (was $0.50). The Boseto copper prospect continues to look very promising, says the broker. And after a placement by the company, the broker notes the group is well placed to complete a definitive feasibility study by March next year. Using a long-term copper price of US$1.50 per pound, the broker generates a valuation based price target of $0.70. Given this suggests significant upside from current levels, RBS retains its Buy rating on the stock. More

<PRG.AX> - PROGRAMMED MAINTENANCE SERVICES LIMITED

Credit Suisse rates <PRG.AX> as Outperform - The broker has adjusted its numbers for the KLM acquisition, the result being an increase of around 4% to its FY11 estimates. The changes support its view FY11 will show a recovery in group earnings and on this basis the broker retains its Outperform rating with an unchanged price target. More

<AIZ.AX> - AIR NEW ZEALAND LIMITED

Credit Suisse rates <AIZ.AX> as Outperform - Target NZ$1.52. The company has announced it will use Airbus 320s to upgrade its domestic fleet and the broker has adjusted its forecasts to incorporate this and changes to its oil price estimates. The changes have no impact on its price target and the broker retains its Outperform rating on the stock. More

<PDN.AX> - PALADIN ENERGY LTD

RBS Australia rates <PDN.AX> as Buy - Target $4.68 (was $5.66). RBS notes quarterly production was well below what it had forecast, and even though management has cut full year output guidance, the new target remains a stretch in the broker's view. Recent share price weakness means there is some value in the stock and so the broker retains its Buy rating, despite cuts to its estimates and price target. However, RBS points out management will have to deliver on performance for a re-rating to occur. More

<IOF.AX> - ING OFFICE FUND

Macquarie rates <IOF.AX> as Upgrade to Outperform from Neutral - Macquarie analysts have reviewed the listed property sector in Australia. The analysts have turned more positive on where cap rates and property valuations will settle, and this has had a positive effect on views for individual securities in the sector. However, in terms of upgrades and downgrades of ratings the end score is two against two. ING Office Fund has been upgraded to Outperform. More