095.330.5219

Trang 095.330.5219 Thái Nguyên

Babcock Shares Climb After UBS Lifts Profit Estimates (Update1)

By Joyce Moullakis

Nov. 17 (Bloomberg) -- Shares of Babcock & Brown Ltd., Australia's second-largest investment bank, had their biggest one-day gain in 10 months after UBS AG and Deutsche Bank AG increased their earnings estimates for the firm.

Babcock & Brown shares closed A$1.45, or 6.3 percent, higher to a record A$24.38 in Sydney, their biggest gain since Jan. 17. The Sydney-based bank this week said it planned to boost property investments in Europe and start an investment fund in Singapore.

GPT Group, Australia's fourth-largest real estate investment trust, and Babcock said they'd inject a further A$800 million ($613 million) into their European property venture to buy more assets and start new funds. Babcock & Brown Chief Executive Officer Phil Green wants to start funds in Europe and the U.S., buying assets and bundling them into investment vehicles the bank sells to investors and manages for a fee.

Jonathan Mott, a Sydney-based UBS analyst who rates Babcock a ``buy,'' increased his fiscal 2007 earnings-per-share growth estimate for the company to 31.8 percent from 20.1 percent because of the firm's ``strong pipeline and fee generation.''

Babcock raised its full-year EPS growth forecast to 45 percent in August 35 percent. Net income in the six months to June 30 rose 55 percent to A$121 million from a year earlier.

Singapore Fund

On Wednesday, Babcock said its planned new fund in Singapore would hold rail, aircraft and energy assets, and is expected to start trading on the Singapore Exchange in late December. The firm has spent S$394 million ($252 million) on aircraft and rail cars which it leases to companies, loan books and renewable energy assets for the Singapore fund.

Babcock's funds and assets under management rose 84 percent to A$31.2 billion in the six months to June 30.

Last week, Babcock & Brown Power, an energy investment fund managed by the bank, said it planned to raise A$446 million in an initial public offering to professional investors and preferred clients in Australia.

Andrew Hill, an analyst at Deutsche Bank in Sydney, raised his 2007 EPS estimate by 5 percent to A$1.38 and his share price target to A$26 from A$24, in a report yesterday.