abn amro reviewing abs

Most recent price target is 1.65 (april) reduced from 2.50

The reason for the reduction in April was they where concerned of the 6% drop in eanrings in the domstic earnings, and whether whether ABC had the ability in the Aust and NZ market to raise fees. I think with last night budget this will not be an issue.

I don't subcribe to the view that it will back at 4$ any time soon however I think a move to the 1.70-1.80 range is possible over the next couple of months as the recent changes increase the value of the Australian operations substantially.