Toby Grimm

g

BUY Sonic Healthcare

e (SHL)

While pandemic effects weigh on Sonic’s core pathology business, Covid testing is high and we see recent weakness as a buying opportunity.

Worley Limited (WOR) Elevated oil prices favour Worley’s traditional business. Expansion into higher-margin sustainability engineering should drive growth opportunities.

HOLD Magellan Financial Group (MFG)

2021 climaxed in the loss of a major client in late December but recent performance has improved. We see attractive value for patient investors. Adbri (ABC)

A recent lime supply deal with Alcoa adds to an expected rise in demand for construction materials from mining, housing and infrastructure projects. SELL

Independence Group (IGO)

Timely acquisitions have created a formidable new-energy materials producer, but a large share price rise in recent weeks leaves it overvalued.

Super Retail Group (SUL)

Logistical issues look to have accelerated in the end-of-year sales period with rising costs and weakening consumer demand.