EXL

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:

SB Citigroup has rated the Excel Coal (EXL) stock as an Upgrade to Buy from Hold, High Risk with their price target rising to $10.15 from $8.62. The reason for the rise was that the broker had increased their commodity price forecasts and hence suggested that Excel Coal is the best thermal coal play with earnings growth potential. Excel Coal Limited is listed on the Australian Stock Exchange under stock code EXL. Check your charts.