ANZ

ANZ has a downgraded stock recommendation from stock analyst Macquarie Research Equities (MRE). ANZ used to be MRE's number one pick in the Australian banking sector for the past 15 months, during which time its discount has narrowed from 9 percent to 2 percent. "The change to ANZ’s ranking reflects this outperformance and the likelihood of a greater drag from bad debt charges than peers over the next 12 months. MRE continue to very favourably view the magnitude and sustainability of ANZ’s growth in revenue and pre-provision earnings.

ANZ Banking Corporation (ANZ) has a Buy 1 stock recommendation call and a $33 share price target from stock analyst and investment banker UBS. The analyst has commented that ANZ's growth prospects aren't fully priced into their shares. With UBS' price target it implies a 5 percent sector premium. UBS "forecast 11.8% (07E) and 11% (08E). 2006 revenue g was 8.4%, c.2% above sector averages, with 2H06 run rate of 9.1% ( driven by retail div'n run rate of 20%)." According to UBS, ANZ is still cheap because:

Macquarie Research Equities (MRE) have highlighted some superannuation stocks that will be advantaged from increased capital inflows from the strong super inflows during this year as well as a consequence over the proposed changes to superannuation regulations announced in the 2006 Budget made superannuation.

Macquarie Research Equities (MRE) note that ""

With investors increasingly risk averse, share prices are at risk in this reporting season if profit delivery does not match the market’s expectations. This change in investor risk appetite driven by concerns over the outlook for global growth and the continued increase in cash rates around the world (ECB and Bank of England the most recent) is impacting on market valuations.

Macquarie Research Equities prefers ANZ and Commonwealth Bank (CBA) amongst the majors in the Australian Banking Sector. ANZ Bank has an Outperform recommendation an a 12 month share price target of $28.20. Commonwealth Bank (CBA) also has an Outperform recommendation and have a 12 month stock price target of $46.50. National Australia Bank (NAB) has a Neutral recommendation and a 12 month share price target of $36.30. Westpac (WBC) has a Neutral stock recommendation and a 12 month share price target of $23.75. St.

A compilation of updates by brokers:

If you wish to use these broker recommendations for trading shares listed on the Australian Stock Exchange, it is highly recommended that you back up your analysis using fundamental or technical analysis or a combination of both before investing in any company.

UBS has a Neutral 2 recommendation for National Australia Bank (NAB) with a target of $35 per share.

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ANZ bank (ANZ) has been in a long term trading channel since mid 2004 although recently the share price has bounced back from recent highs above $28 to around $26 in the recent "market correction" (View long term chart). Trade volume spiked in the sharp downturn during May 2006 and the MACD indicates the stock is oversold. Macquarie Research Equities (MRE) indicate that ANZ bank is their number one pick of the major banks in this moment of time.

UBS has rated the ANZ Banking Group (ANZ) with a Buy 1 recommendation and a share price target of $33.50 based on an upgrade of Earnings Per Share (EPS) estimate. ANZ Banking Group is listed on the Australian Stock Exchange under stock code ANZ. Check your charts.

Last week the Australian government handed down their 2006-07 federal budget. Macquarie Research Equities (MRE) notes that "The centre piece of the Budget was the personal income tax cuts which were more widespread and extensive than the financial markets had been anticipating. This will inevitably provoke fears that interest rates may have to rise in order to offset the fiscal stimulus.
The key initiatives announced in the Budget that have notable implications for the Australian listed market are as follows:
- Reductions in the tax rates on personal income as well as increases to the thresholds for each tax rate;
- Accelerating the depreciation allowance for eligible business investment;
- Abolition of the Reasonable Benefit Limit (RBL) and age based contribution limits, and the elimination of tax of benefits paid to retires from taxed superannuation funds."
Here are some Australian listed stocks that MRE believes that will benefit from the budget: