Australian Shares Recommendations

SB Citigroup has a hold, high risk rating for Challenger Financial Services Group (CGF), all the while increasing their target share price from $4.10 to $4.15. "The analysts note, however, they believe the risk/reward equation has come more into investors' favour in recent weeks as Challenger's share price has fallen 8% since the release of its 1H06 result.

UBS has a Buy 2 recommendation for Alumina Limited (AWC) with a sahre price target of $8.90 on the back of higher commodity price forecasts. UBS has upgraded their recommendation for AWC from Neutral 2 to Buy 2 reflecting the higher price target as a result of the higher commodity price forecasts. "Main risk is price and project delays." Valuation of $8.90 based on DCF, d.r 10%. Alumina stocks are listed on the Australian Stock Exchange (ASX) under stock code AWC. Check your charts.

UBS has a Neutral 2 recommendation for Tabcorp Holdings Limited (TAH) with a price target of $16.15 per share (based on DCF). Tabcorp Holdings Limited is listed in the Australian Stock Exchange under stock code TAH.

Macquarie Research Equities (MRE) has maintained their Neutral Recommendation for Zinifex (ZFX) with a 12-month price target of $11.00.

Macquarie Research Equities (MRE) has an outperform recommendation on Challenger Financial (CGF) with a price target of $4.32. The Challenger Financial stock price (CGF) rallied this Monday morning after announcing its 31st March06 Assets and Loans Under Management and Figure of $35.3 billion. MRE remains bullish on the prospects for Challenger (CGF) and believe that earnings per share growth over the next few years should remain very strong and the stock remains an attractive play at present levels. MRE's target of $4.32 per share is a premium of 18 per cent over today's price.

SB Citigroup has changed their recommendation for PMP as an Upgrade to Hold from Sell, High Risk while lifting their target price from $1.40 to $1.50. SB Citigroup notes that the stock price has fell back to a valuation range that justified the sell rating. SB Citigroup’s view on the printing industry as "brutally competitive".

ABN Amro has a Buy recommendation for CSL Limited (CSL) with a target of $63.50. CSL provides an enhancer for vaccines, and if its Iscomatrix enhancer is used in Merck's pharmaceutical products there is a likelihood of substantial royalty payments. ABN Amro estimates these royalty payments to CSL could be as much as 2% of Merck vaccine sales, which means Iscomatrix may be worth more than $5.00 per share.

The Australian resources sector is definitely in boom mode with BHP riding the crest of the resources boom. RIO is also riding the crest of success.

UBS has increased their price target for Rio Tinto from $100 to $90 with a Buy 2 recommendation retained. The increase in price target reflects higher earnings as a result of the commodity price revisions.

Westpac Banking Corporation (WBC) have outperformed the bank sector and the market (XJO) over the past two months and there is speculation of an increasing dividend payout ratio. Westpac (WBC) is reporting its 1H06 result this Thursday, 4 May, and Macquarie Research Equities (MRE) believes that, given this good run of Westpac's share price, "a good deal of any share price upside may already be priced in to the stock (buy on the rumour, sell on the fact)", and hence unlikely to surprise on the upside.