Rudi’s View: Boss Energy, Mineral Resources, TPG Telecom, ResMed & WiseTech Global

This story features ALTIUM, and other companies. For more info SHARE ANALYSIS: ALU

By Rudi Filapek-Vandyck

Morgan Stanley's Macro+ Focus List for Australian equities was last amended with no fewer than four removals and additions in early November last year. At the start of a new calendar year, it's probably worth taking note of which ASX-listed companies are on the list.

Inclusions are usually made with a longer term horizon in mind, unless share prices move dramatically, and changes have not been made often over the twelve months past. This week saw the broker releasing an update, confirming no additional changes have been made post November.

The ten stocks selected are:

-Altium ((ALU))
-Aristocrat Leisure ((ALL))
-Car Group ((CAR))
-CSL ((CSL))
-Goodman Group ((GMG))
-Macquarie Group ((MQG))
-QBE Insurance ((QBE))
-Telstra Corp ((TLS))
-Treasury Wine Estates ((TWE))
-Woodside Energy ((WDS))

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Morningstar equally updated its selection of Global Equity Best Ideas, with ResMed ((RMD)) included under the international label, alongside the likes of Albemarle, Newmont Corp ((NEM)), PayPal, and Estee Lauder.

For those not yet fully familiar about ResMed's specifics; the company is officially headquartered in the USA where it is listed also. Newmont, of course, nowadays includes the assets that used to trade as Newcrest Mining on the local bourse.

Zooming in on ASX-listings specifically, Morningstar's Best Ideas include:

-a2 Milk ((A2M))
-ASX ((ASX))
-Aurizon Holdings ((AZJ))
-Domino's Pizza ((DMP))
-Kogan ((KGN))
-Lendlease ((LLC))
-Santos ((STO))
-TPG Telecom ((TPG))
-Ventia Services ((VNT))
-Westpac ((WBC))
-WiseTech Global ((WTC))

Probably the only real surprise inclusion is WiseTech Global which, unlike all others, cannot be labeled a beaten-down share market laggard. Morningstar's selection is usually based on a cheap valuation.

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Goldman Sachs analysts, in a recent sector review, prefer Evolution Mining ((EVN)) and Northern Star ((NST)) among Australia's larger cap gold producers, with Gold Road Resources ((GOR)) and De Grey Mining ((DEG)) favourites among smaller cap names.

Goldman Sachs equally has a positive view on base metals for the year ahead, reflected in Buy ratings for Rio Tinto ((RIO)), BHP Group ((BHP)), Coronado Global Resources ((CRN)), Champion Iron ((CIA)), Iluka Resources ((ILU)), and BlueScope Steel ((BSL)).

Equally important, perhaps, are the broker's Sell ratings for Fortescue Metals ((FMG)), Mineral Resources ((MIN)), and New Hope Corp ((NHC)).

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Sticking with the mining and metals theme, RBC Capital's lists of sector favourites recently saw the addition of Sandfire Resources ((SFR)), alongside the removal of Mineral Resources and South32 ((S32)).

At the macro level, the analysts moved base metals and energy transition metals to Overweight, joining precious metals and uranium. Diversifieds/bulk producers have equally been upgraded to Overweight.

Backed by a positive view on the outlook for gold, RBC Capital has Outperform ratings on De Grey, Bellevue Gold ((BGL)), Silver Lake Resources ((SLR)), Regis Resources ((RRL)), and Northern Star ((NST)). Gold Road Resources and Evolution Mining are both rated Sell.

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Monday's preview to upcoming quarterly updates by Ord Minnett has revealed Buy ratings for:

-AIC Mines ((A1M))
-Aurelia Metals ((AIM))
-Alkane Resources ((ALK))
-Gold Road Resources
-Pantoro ((PNR))
-Ramelius Resources ((RMS))
-Red 5 ((RED))
-Sandfire Resources
-Silver Lake Resources
-Stanmore Resources ((SMR))

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Back in December, Bell Potter analysts released their stock picks for 2024, ranked by themes and market segments:

-For Listed Investment Companies (LICs); Australian Foundation Investment Company ((AFI)), Plato Income Maximiser ((PL8)), and MFF Capital Investments ((MFF))

-Agriculture & Fast Moving Consumer Goods; Bega Cheese ((BGA)), Rural Funds Group ((RFF)), and Elders ((ELD))

-Technology; Life360 ((360)), WiseTech Global, and Task Group ((TSK))

-Diversified Financials; Perpetual ((PPT)), Regal Partners ((RPL)), and PSC Insurance ((PSI))

-Real Estate; HMC Capital ((HMC)), Dexus Convenience Retail REIT ((DXC)), HealthCo Healthcare & Wellness REIT ((HCW))

-Retailers; Cettire ((CTT)), Propel Funeral Partners ((PFP)), and Accent Group ((AX1))

-Industrials; DroneShield ((DRO)), Austal ((ASB)), Corporate Travel Management ((CTD)), IDP Education ((IEL)), IPD Group ((IPG)), and The Environment Group ((EGL))

-Healthcare; Telix Pharmaceuticals ((TLX)), Cyclopharm ((CYC)), Clarity Pharmaceuticals ((CU6)), Clinuvel Pharmaceuticals ((CUV)), and Immutep ((IMM))

-Gold sector; Regis Resources, and Santana Minerals ((SMI))

-Base Metals; Aeris Resources ((AIS)), Nickel Industries ((NIC)), Mineral Resources, and IGO Ltd ((IGO))

-Strategic Minerals; Lynas Rare Earths ((LYC)), Talga Group ((TLG)), Liontown Resources ((LTR)), and Alpha HPA ((A4N))

-Energy; Boss Energy ((BOE)) and Strike Energy ((STX))

-Mining services providers; Chrysos Corp ((C79)), matrix Composites & Engineering ((MCE)), and GenusPlus Group ((GNP))

(Do note that, in line with all my analyses, appearances and presentations, all of the above names and calculations are provided for educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions.)  

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P.S. II – If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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