FN Arena Broker Call Headlines - 20 Nov 2009

<TLS.AX> - TELSTRA CORPORATION LIMITED

RBS Australia rates <TLS.AX> as Buy - The Senate program has Telstra due to be discussed next week on the last sitting day of the year, but the broker expects a deferment to 2010. The ETS has to be discussed as well. Meanwhile the broker has increased its target from $4.40 to $4.45 after applying a greater long term growth expectation for Telstra's mobile business. More

<MND.AX> - MONADELPHOUS GROUP LIMITED

JP Morgan rates <MND.AX> as Neutral - The company has announced a contract win in its Maintenance and Industrial Services division, the broker noting while the contract is small in earnings terms it does add to the group's workbook and so is a positive. Further contract wins are expected but in the broker's view these are already being priced into the stock and so it retains its Neutral rating. More

<SHL.AX> - SONIC HEALTHCARE LIMITED

Credit Suisse rates <SHL.AX> as Neutral - AGM commentary from management re-affirmed earnings guidance for FY10, the broker noting the domestic pathology operations in particular appear to be doing well. Further bolt on acquisitions are expected but the broker sees only limited value in the stock at current levels so it retains its Neutral rating. More

<HST.AX> - HASTIE GROUP LIMITED

Credit Suisse rates <HST.AX> as Outperform - The company has made two acquisitions for a total of around $6m and on the broker's numbers this should be modestly accretive to earnings in FY11. On news of the acquisitions the broker retains its Outperform rating, taking the view on its earnings estimates the stock looks solid value given it is trading at a discount to the market. More

<CSR.AX> - CSR LIMITED

Citi rates <CSR.AX> as Sell, High Risk - The entry of Knauf to the domestic glasswool market looks like a done deal given the plant has been approved by the NSW government. Citi notes this will double domestic glasswool capacity and will ultimately cause structural damage to <CSR.AX>'s insulation businesses. At the same time, the Fed government has further cut its insulation budget from $2.7bn to $2.45bn. While a shake up of the insulation industry that has accompanied the cut does provide some upside for <CSR.AX>, in general it is also bad news for <CSR.AX>'s insulation businesses. The Sell call is maintained. More

<GFF.AX> - GOODMAN FIELDER LIMITED

Credit Suisse rates <GFF.AX> as Outperform - AGM comments from management indicate 2H09 run rates have continued through the first quarter of the current year, which is an outcome in line with the broker's forecasts. With the company likely to retain some further commodity cost savings in coming periods, the broker expects upgrades to market earnings forecasts, and so it retains its Outperform rating. More

<ELD.AX> - ELDERS LIMITED

RBS Australia rates <ELD.AX> as Buy - <ELD.AX>ers' result put the lid on an "unprecedented" operating environment in FY09, the broker says, and with a transformation program underway the broker is looking forward to decent earnings growth. Forecast earnings nevertheless have to fall 7.5% and 10% in FY10-11 to account for the dilution of the $550m share purchase plan, but under new management the boker can see the share price ubstanitally higher in the next few years. More

<BEC.AX> - BECTON PROPERTY GROUP

RBS Australia rates <BEC.AX> as Hold - The road ahead for <BEC.AX>ton is all about debt reduction, asset sales and a streamlining of the business, the broker notes following the AGM. The broker has reduced its target from 16c to 13c due to a lower than expected contribution from Property. The broker retains Hold noting <BEC.AX>ton is not out of the woods yet, with 2010 refinancing issues overhanging. More