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Citi 03/08/2010 1 Buy, High Risk $6.50 39.5%

Target $6.50 (was $6.80). The company has appointed CFO Grant Fenn as its new CEO, the broker pointing out he is well regarded for his strategic capabilities and operational discipline.

New FY10 guidance sees the broker adjust its earnings estimates and the changes mean a reduction in price target. There is no change to the broker's Buy rating.




JP Morgan 03/08/2010 3 Neutral $5.36 15.0%

The company's CEO has resigned and will be replaced by current CFO Grant Fenn, the broker noting Fenn doesn't have a significant amount of engineering experience to the role.

The broker also sees increased scope for a capital raising to be announced with the new CEO appointment, so there is no change to its Neutral rating on the stock.





UBS 03/08/2010 1 Buy $5.25 12.7%

Downer's CEO has resigned and UBS analysts have responded by lifting their price target, indicating a perceived lowered risk profile. The analysts explain they'd always valued the shares between $5-$5.50 and previously they'd set their target at the bottom of this range.

As they have now decided to move the target to the centre of the valuation range, UBS's price target has lifted by 25c to $5.25. The big gap between target and share price probably explains why the Buy rating has remained in place.




Credit Suisse 03/08/2010 3 Neutral $5.15 10.5%

The broker suggests the appointment of a new CEO at Downer increases the potential for differing views on sources of growth, and also increases the possibility of a capital raising.

Target falls from $5.30 to $5.15.