Consumer Discretionary

While recent gains suggest a short-term consolidation is possible, stockbroker Moelis continues to see medium-term upside in The Reject Shop.

Equity strategists have been warning recently that the Australian consumer is not going to bounce back as assumed. But not all strategists agree with this dour prediction.

Market strategists at Macquarie and UBS suggest investors should continue seeking risk assets, but RBS strategists are less comfortable.

While Carsales.com trades on an earnings multiple of better than 20 times DJ Carmichael suggests the stock is still a Buy.

With inflation the RBA’s major concern, evidence is mounting an oversupply of electronic goods could lead to significant price cuts without a pick up in sales for Australia’s listed retailers.

The market is building in an assumed consumer recovery in 2011 on the strength of the Australian economy. But strategists argue such assumptions ignore a post-GFC change in the consumer mindset.

In the wake of the David Jones result, analysts query whether current valuation can be justified.

Myer met expectations with its full year profit result but stockbroker opinions on the stock remain mixed.

A stronger Australian dollar is causing a downturn in the Australian tourism industry, with implications for various regions and sectors of the economy, CommSec reports.

Morgan Stanley suggests Diversified Resources stocks are about to enjoy upgrades to market forecasts. Plus a rally for copper. Plus the latest views on media stocks in Australia.