##{"id":56629,"date":"2010-05-18T12:59:36","date_gmt":"2010-05-18T02:59:36","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2010\/05\/18\/shifting-preferences\/"},"modified":"2010-05-18T12:59:36","modified_gmt":"2010-05-18T02:59:36","slug":"shifting-preferences","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2010\/05\/18\/shifting-preferences\/","title":{"rendered":"Shifting Preferences"},"content":{"rendered":"

\n\tBy Rudi Filapek-Vandyck<\/p>\n

\n\tMorgan Stanley has continued increasing its coverage of Australian stocks, adding latex glove and condom manufacturer Ansell ((ANN)) and accounting software firm Reckon ((RKN)) this morning.<\/p>\n

\n\tEarlier today we published a story on Ansell, including the maiden view as released by Morgan Stanley -see Ansell: Growth Versus Costs And Currencies <\/a>– so we'll keep it brief. Morgan Stanley is not big on Ansell predominantly because its price target is in the vicinity of the current share price.<\/p>\n

\n\tThe initiation of coverage on Reckon, however, proved a much more positive exercise. Morgan Stanley has initiated with a price target of $2.70, no less than 35% above yesterday's share price. No wonder thus, the rating stands at Overweight in a sector rated by the analysts as otherwise "In-Line".<\/p>\n

\n\tConsensus earnings per share forecasts for the next few years assume a steady increase, but Morgan Stanley analysts seem to suggest growth is poised to surprise to the upside.<\/p>\n

\n\tMeanwhile, market strategists at Perth-based stockbroker DJ Carmichael have made a few changes to their Model Portfolio recently and these include the removal of Ampella Mining ((AMX)) in exchange for adding shares in Gryphon Minerals ((GRY)) and Hot Chili ((HCH)).<\/p>\n

\n\tThe latter is a newly-listed uranium-gold-copper company with assets and partnerships in Chile. DJ Carmichael recently initiated coverage with a Speculative Buy rating.<\/p>\n

\n\tOver at BA-Merrill Lynch, market strategists have equally updated their list with their best ideas for the Australian share market, the Australia Focus 1 list. The only change made was the removal of CommBank ((CBA)) and the inclusion of National Australia Bank ((NAB)).<\/p>\n

\n\tMost investors would instinctively know what triggered the change in banking exposure: it's a valuation thing.<\/p>\n","protected":false},"excerpt":{"rendered":"