Shifting Preferences

This story features ANSELL LIMITED, and other companies. For more info SHARE ANALYSIS: ANN

By Rudi Filapek-Vandyck

Morgan 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.

Earlier today we published a story on Ansell, including the maiden view as released by Morgan Stanley -see Ansell: Growth Versus Costs And Currencies – 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.

The 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".

Consensus 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.

Meanwhile, 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)).

The 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.

Over 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)).

Most investors would instinctively know what triggered the change in banking exposure: it's a valuation thing.

Click to view our Glossary of Financial Terms