Rudi's View | Jun 19 2025
By Rudi Filapek-Vandyck, Editor
The local share market, and the small cap segment in particular, might be looking rather moribund as the investment community, both local and internationally, is closely observing further developments in the Middle East, but this does not stop analysts at Morgan Stanley searching for possible lucrative investment ideas.
Earlier today the broker highlighted three small cap companies for whom it believes expectations are too benign. To add conviction to its calls, all three have received a notably higher price target, while positive ratings have been re-iterated.
Enough suspense. If you haven't read today's update of the Australian Broker Call Report yet, the three nominations are:
-Eagers Automotive ((APE))
-Temple & Webster ((TPW))
-Life360 ((360))
All three are rated 'Conviction Overweight'.
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Two ideas suggested by analysts at Wilsons:
-Sell Sonic Healthcare ((SHL)) and buy ResMed ((RMD)). The latter is a core holding in Wilsons' Model Portfolio and remains its highest conviction exposure to the local healthcare sector.
-Sell Wesfarmers ((WES)) and buy Woolworths ((WOW)). Both share lots of similarities and should, in Wilsons' view, trade on similar valuations. They do not.
A separate report, in which ongoing conviction in the AI megatrend and strong demand for data centres was repeated, Wilsons yet again nominated Goodman Group ((GMG)) as their number one favourite exposure to the investment thematic.
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