Rudi’s View: AGL, GPT, James Hardie, Qantas, Pilbara & Xero

rudi-views
Always an independent thinker, Rudi has not shied away from making big out-of-consensus predictions that proved accurate later on. When Rio Tinto shares surged above $120 he wrote investors should sell. In mid-2008 he warned investors not to hold on to equities in oil producers. In August 2008 he predicted the largest sell-off in commodities stocks was about to follow. In 2009 he suggested Australian banks were an excellent buy. Between 2011 and 2015 Rudi consistently maintained investors were better off avoiding exposure to commodities and to commodities stocks. Post GFC, he dedicated his research to finding All-Weather Performers. See also "All-Weather Performers" on this website, as well as the Special Reports section.

Rudi's View | Oct 03 2024

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.

****

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.
 


The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE

If you already had your free trial, why not join as a paying subscriber? CLICK HERE

MEMBER LOGIN