FN Arena Broker Call Headlines - 6 Nov 2009

<WDC.AX> - WESTFIELD GROUP

Deutsche Bank rates <WDC.AX> as Hold - Deutsche expects that FY10 EPS will be the trough, reflecting a stabilisation of US operations and the full year impact of weaker USD/AUD. After that, the broker thinks medium-term EPS growth of 7-8% a year is achievable. However, notes Deutsche, stronger EPS growth won't be happening until later in the cycle and it will lag development starts. The Hold call is maintained, with the stock trading fairly close to the broker's target price. More

<ASX.AX> - AUSTRALIAN STOCK EXCHANGE LIMITED

Credit Suisse rates <ASX.AX> as Neutral - The broker notes monthly figures for October show moderating growth across both cash and derivatives markets, while the value of primary capital raisings also fell relative to September. There are no changes to its numbers on the back of the October data and the broker retains its Neutral rating. More

<KCN.AX> - KINGSGATE CONSOLIDATED LIMITED

Deutsche Bank rates <KCN.AX> as Hold - The company has a found a new mineralised region to the north of the Chatree mine, with Deutsche noting that there are some sings it could significantly add to the longevity of Chatree. While it's too early to put a value on the discovery, the broker has none the less lifted some valuation multiples, which sees the target price lift to $9.00 (from $8.30). The Hold call is maintained, with the broker citing the potential for a sell down of the mining asset and reinvestment. More

<TEL.AX> - TELECOM CORPORATION OF NEW ZEALAND LIMITED

RBS Australia rates <TEL.AX> as Hold - Ahead of today's FY result, the broker says there are 4 things to look for: Signs that the new XT mobile network is delivering data driven revenue growth. Are cost-cutting plans are progressing? Are IT systems separation plans running to schedule? Where are negotiations with Government up to on the national fibre roll-out? Hold retained, target is NZ$2.60. More

<AAX.AX> - AUSENCO LTD

RBS Australia rates <AAX.AX> as Downgrade to Hold from Buy - Target $4.78 (was $5.73). Delays in being awarded contracts and the stronger Australian dollar has caused the broker to cut its earnings forecasts for both this year and 2010 by 20%, which flows through to a lower price target on the stock. While the shares don't look expensive at current levels the broker notes there remains some uncertainty with respect to contract visibility and given this it downgrades to a Hold rating. More

<BPT.AX> - BEACH PETROLEUM LIMITED

JP Morgan rates <BPT.AX> as Overweight - The broker notes the company has a very good track record in terms of exploration success in the Cooper Basin, which is important as management suggest they have another five years worth of drilling and discoveries on their tenements. To this broker this implies its valuation is reasonable if not conservative and so it remains Overweight on the stock. More

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

Credit Suisse rates <DMP.AX> as Outperform - Target $5.49 (was $4.70). AGM comments confirmed full year earnings guidance and store rollout expectations, which has caused the broker to make minor upward adjustments to its numbers. As the company offers further evidence growth is being realised the broker sees improved share price performance and so it retains its Outperform rating on the stock in expectation of such an outcome. More

<ISF.AX> - ISOFT GROUP LIMITED

RBS Australia rates <ISF.AX> as Upgrade to Buy from Hold - The latest update from management shows while organic sals growth in FY10 should still be around 10% revenue growth will fall short of previous guidance given adverse currency movements. The broker has not adjusted its forecasts as of yet but it notes if current spot rates persist through FY10 there is around 6% downside to its numbers. On the back of recent share moves the broker upgrades to a Buy rating. More