Rudi's View | 4:02 PM
By Rudi Filapek-Vandyck, Editor
Not everyone is back from holidays yet (definitely not) but the February results season is approaching and we have spotted the early research previews of what will be largely a second half of February affair (with lack of accountants to blame, apparently).
Over the past few days, Morgan Stanley has started to communicate its High Conviction calls ahead of next month's results releases. So far, nominations are:
-Fleetpartners ((FPR))
-Data#3 ((DTL))
-Life360 ((360))
-Corporate Travel Management ((CTD))
Elsewhere, Morgan Stanley analysts have updated their international selection of Best Businesses, which aims to combine elements of corporate Quality with 'valuation', forecasts and Quant analysis, for a two-year investment horizon (which can be extended, of course).
This year's selection has slimmed down to 31 stocks versus 38 at the prior update which the broker explains through on average higher valuations generally.
Amidst often made calls for an 'Everything Bubble', investors might be surprised the selection still includes popular US names such as Apple and Microsoft, together with Coca-Cola, Costco, Eli Lilly, Ferrari, JP Morgan Chase, TSMC, and Visa.
Two ASX-listed companies made the list: Macquarie Group ((MQG)) and Rio Tinto ((RIO)).
Some of the lesser familiar names include Chugai Pharmaceutical, Inditex, Shin-Etsu Chemical, Stryker Corp, Technip Energies, Tenaga Nasional, and Wolters Kluwer.
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Gold sector analysts at RBC Capital have observed the early, preliminary signals coming from ASX-listed producers are once again "mixed" as has been the case for a number of precedents now.
But the broker seeks solace in its forecast that the price of gold should remain well-supported in 2025, and this should --all else remaining equal-- also support share prices of ASX-listed exposures.
RBC Capital has Outperform ratings for Regis Resources ((RRL)), Westgold Resources ((WGX)) and Bellevue Gold ((BGL)).
Peers at Goldman Sachs recently initiated coverage on Newmont Corp with a Buy rating, while also upgrading Northern Star ((NST)) to Buy. This broker favours Gold Road Resources ((GOR)) in the midcap segment.
Regis Resources is Sell-rated at Goldman Sachs.
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Property sector analysts at Morgan Stanley believe the bottom is in for the Office sector in Australia. They also believe it'll be a while yet before the benefits will show up for landlords including the likes of Dexus ((DXS)) and Centuria Office REIT ((COF)).
Better to play the theme through fund managers including Charter Hall ((CHC)) and Centuria Capital Group ((CNI)) fow which the benefits show up much quicker.
On a more general tone, REITs sector analysts at Jarden see "good value" among ASX-listed REITs, though the February reporting season might still be too early to provide a positive catalyst. Jarden's view thus spans over the next 6-12 months.
Among fund managers, Goodman Group ((GMG)) and Qualitas ((QAL)) remain Jarden's favourites. With sector momentum to improve for residental properties, both Stockland ((SGP)) and Mirvac Group ((MGR)) are expected to benefit.
Among smaller cap REITs, Jarden's favourites are Region Group ((RGN)), Waypoint REIT ((WPR)), National Storage ((NSR)), HomeCo Daily Needs REIT ((HDN)), Arena REIT ((ARF)), and Centuria Industrial REIT ((CIP)).
Both HMC Capital ((HMC)) and Lifestyle Communities ((LIC)) are rated Sell at Jarden.
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