Australian Shares Recommendations

Santos (STO) has a 12-month share price target of $26.59 from Australian stockmarket analysts from Citi.

Santos (STO) Investor Seminar (Sydney 3 June 2008)

Emphasis on coal seam gas and LNG:

A major emphasis on Santos coal seam gas assets and LNG was understandable after Petronas recently agreed to pay US$2bn for a 40% share in Santos proposed Gladstone LNG Project. Santos is also a participant in the PNG LNG Project, which recently committed to key front end engineering and design (FEED).

Rising Eastern Australia gas demand and pricing outlook:

Transurban (TCL) has a share price target of $7.10 from Australian stockmarket analyst Macquarie Research Equities.

Transurban (TCL) The case for cutting distributions

Market already seems to be pricing the likelihood of a cut to distributions:

At $5.48, TCL is trading on an FY08E OpCF yield of ~4.4% & growth of 7.3% pa to FY20E (total return ~11.7% pa). This compares to an FY08E distribution yield of ~10.4% & growth of ~1.6% pa to FY20E (total return ~12.0%) on current profile.

Market no longer rewarding TCL for its re-gearing strategy:

Westfield Group (WDC) is upgraded to Buy from Hold and it's target share price has downgraded to $18.50 from Australian stockmarket analysts from Citi.

Westfield Group (WDC) : Playing Hide and Seek

With the recent share price decline, we upgrade Westfield to Buy from Hold. Westfield represents good value compared to Australian REIT peers given its relatively lower earnings risk, good valuation discount, quality assets, and low re-financing risk. Westfield is also attractive relative to Global peers.

Here is an update on the Reserve Bank of Australia (RBA) provided by Australian market analyst UBS.

Review of Interest Rate Decision

As expected, the RBA maintained the cash rate at 7.25% yesterday. The accompanying statement continued to highlight the upside risks to inflation and in today’s note Macquarie Research Equities (MRE) reviews the statement and provides an insight into what the Reserve Banks expectations are for interest rates in the near term.

Australian mining and construction industries preview from sharemarket analyst Macquarie Research Equities.

The Mining & Construction Affair

Here is an Australian banking sector update from Australian market analyst UBS.

Labor Govt keeps the Four Pillars Policy

Rudd Government is committed to the four pillars policy:

Arrow Energy (AOE) has a maintained Buy High Risk Recommendation and a $5.45 share price target from Australian stockmarket analysts from Citi.

Arrow Energy Limited (AOE): Arrow LNG - Go Well Go Shell!

Shell Partners Arrow with its Gladstone LNG Project — Arrow achieves a $776M payment from Shell for 30% equity in all of its SE Qld csm assets and a 10% equity stake in their International operations. This has materially lifted our target price from $3.41 to $5.45/share. We maintain our Buy High Risk Recommendation.

Australian Global Commodities Markets Update provided by Australian stockmarket analyst Macquarie Research Equities.

This year’s Golden Globe goes to…

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DUET Group (DUE) remained MRE’s top pick in the regulated asset sector

DUET Group (DUE) - A Div upgrade in the pipeline?

DUE has recovered in recent times from it’s lows around $2.70 reached earlier this year during the depths of the credit crisis. DUE has recently broken through the $3.20 level where it has seen good support in the past, and the potential exists for the stock to kick from here. DUE presented at the recent Macquarie Emerging Leaders Conference, and we were presently surprised by the way the story is progressing.

Here is an update on Australian Banking Sector from market analyst Macquarie Research Equities.

Credit growth, goodbye to the highs

April credit growth 0.4%: business 0.1%, personal 0%, housing 0.7%: