Less Conviction After Share Price Runs

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            [0] => ((IPL))
            [1] => ((AGK))
            [2] => ((QAN))
            [3] => ((WPL))
            [4] => ((FXJ))
            [5] => ((JBH))
            [6] => ((RIO))
            [7] => ((RMD))
            [8] => ((MYR))
            [9] => ((WOW))
            [10] => ((WES))
            [11] => ((MTS))
        )

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        (
            [0] => IPL
            [1] => AGK
            [2] => QAN
            [3] => WPL
            [4] => FXJ
            [5] => JBH
            [6] => RIO
            [7] => RMD
            [8] => MYR
            [9] => WOW
            [10] => WES
            [11] => MTS
        )

)

This story features QANTAS AIRWAYS LIMITED, and other companies.
For more info SHARE ANALYSIS: QAN
The company is included in ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Rudi Filapek-Vandyck

Market strategists at UBS have decided to cut loose Incitec Pivot ((IPL)) from their select list of Conviction Buys in the Australian share market. Not that there's anything wrong with the producer of explosives and fertilisers, but after some significant share price appreciation in the weeks past, valuation has become more of a concern to the stockbroker.

The select list of Australian Key Calls, as UBS labels its Conviction List, has undergone a few changes this week. Apart from the removal of Incitec Pivot, the strategists also added AGL Energy ((AGK)), Qantas Airways ((QAN)) and Woodside Petroleum ((WPL)).

Other names on the list are Fairfax Media ((FXJ)), JB Hi-Fi ((JBH)), Rio Tinto ((RIO)) and ResMed ((RMD)).

Strong share price performance has also led to the removal of retailer Myer ((MYR)) from JP Morgan's “Analyst Focus List” today.

Readers of the daily Australian Broker Call Report would have noticed stockbrokers are still issuing more recommendation downgrades than upgrades, and mostly because of “full valuations” continuing appearing on analysts' radars.

Retail specialists at RBS Australia, however, predict there is good news around the corner for food retailers in Australia. On their projections, food inflation should again roar its ugly head in Australia in the first half of calendar 2011 and then really accelerate in the second half next year.

While this will command news headlines and the attention of policymakers at the Reserve Bank, it also means earnings upgrades for supermarkets, reports RBS. The stockbroker predicts Woolworths ((WOW)) and Coles ((WES)) will benefit more than Metcash ((MTS)), but RBS nevertheless prefers exposure to discretionary retail stocks as the outlook for consumer sentiment is likely to improve in the months ahead.

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