Markets: Stocks to watch at the open

Myer has improved consumer confidence behind it, while Tony Abbott's infrastructure proposals may boost Transurban.

Myer

Rising consumer confidence could be enough for investors to overlook any blemishes retailer Myer reported this morning.

Although sales revenue for the group grew only 0.8 per cent from the previous year, increasing consumer spending and sales growth offer upside potential for Myer’s share price.

Recent economic data has been conducive to this possibility; the question is now down to timing.

Transurban

JP Morgan has been the first broker to change its view on Transurban following the Liberal Party’s return to power. 

Transurban is in prime position to benefit from Tony Abbott’s plans to spend $20 billion on infrastructure projects.

JP Morgan has a target price of $6.59. Transurban shares closed at $6.54 yesterday.

Boart Longyear

Boart investors can breathe easy. The company’s need to raise new debt to avoid covenant breaches can be pushed to the side for now as it has announced a $US300 million debt raising to institutional buyers in the US.

It is tipped Boart will use the funds to pay down existing borrowings under its revolving credit facility. No guidance has been given in regards to costing, but it would be a material increase on existing facilities as its credit rating has deteriorated.

The debt issuance doesn’t change its leveraged position or the health of its primary industry of operation. 

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