Rudi's View | 5:23 PM
By Rudi Filapek-Vandyck, Editor
Goldman Sachs's APAC Conviction List has seen a few changes, and it involves some ASX-listed companies too.
Life360 ((360)) has been elevated into the list of High Conviction stock picks, but this has come at the expense of two other ASX-listed entities that have been removed: Qantas Airways ((QAN)) and Lynas Rare Earths ((LYC)).
The inclusion of Life360 is based on analyst Chris Gawler's conviction this young and upcoming growth magnet still has many more years of robust momentum awaiting on the horizon, both in the USA and internationally, plus advertising should add a new high-margin revenue stream.
Goldman Sachs' current price target (for the next twelve months) is $21.85 versus a share price trading around $19.30.
The only other ASX-listing still included in the list is Xero ((XRO)) which is seen trading some -34% below the broker's $201 price target.
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UBS's selection of Best Stocks Ideas has added Dexus ((DXS)), REA Group ((REA)) and Newmont Corp ((NEM)) with the broker upgrading its call for the real estate sector generally to Neutral from Underweight on the expectation that follow-throughs in central banks interest rate cuts will result in a better environment next year, which should see higher profits and cash flows for Australian companies generally.
To compensate fro the three additions, UBS has removed Computershare ((CPU)) with history showing the stock tends to underperform during Fed rate cut periods, as well as James Hardie ((JHX)) and Universal Store ((UNI)) following strong share price rallies.
UBS has also removed Pilbara Resources ((PLS)) from its selection of Least Preferred exposures now that China seems serious in re-starting its domestic economic momentum.
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