Shaw and Partners BUY
• Ramsay Health (RHC)
Healthcare stocks often outperform in tougher economic environments, and the company’s portfolio of real estate assets adds to its defensive characteristics.
• James Hardie (JHX)
James Hardie is the leading player in fibre cement industry. There is still high demand from the backlog of construction projects. We expect positive profit results to continue.
• Newcrest Mining (NCM)
NCM received a best and final third bid from Newmont, which the board appears set to accept. As such, we recommend holding, with the stock trading at about an 8 per cent discount to the bid price.
• Telstra (TLS)
Recent returns have been strong from TLS, with management progressing the strategic plan well. We expect Telstra to generate stable revenues in what could be a volatile economy.
• Transurban (TCL)
We think the recovery in traffic volumes has largely been achieved. The shares are now fully priced and we expect some earnings downgrades.
• Bendigo & Adel Bank ( BEN)
Recent events in the US and Europe have reduced appetite for banks globally. We prefer the ‘big 4’ major banks now that prices have slipped.
Timothy Haselum Catapult Wealth BUY
• Charter Hall Long WALE (CLW)
Listed property has been hit hard with CLW trading at a significant discount to its NTA. We think this is a great entry point.
• Cleanaway (CWY)
We like CWY better now that it’s down from its highs. Last reporting NPAT missed after dealing with a number of issues from fire, floods, labour and energy costs, but we see improvement from here.
• Sonic Healthcare (SHL)
Impressive rally, up 21 per cent in the past six months. Covid revenues were always going to retreat, however, base revenue is gaining momentum.
• Coles Group (COL)
Strong rally in the past six months, EBIT margin increased from 4.8 to 5.1 per cent. From here we will be watching how they do v Aldi and Costco.
• InvoCare (IVC)
The market reaction to IVC rejection of the $12.65 takeover offer is heartening. However, it may be prudent to lock in some gains here.
• Rio Tinto (RIO)
Worried about the China reopening bullishness in iron ore, and the decreasing odds of soft landings, we are more keen to lighten off.