Rudi's View | 4:21 PM
By Rudi Filapek-Vandyck, Editor
Fresh from the press: Stockbroker Morgans harbours positive expectations ahead of the upcoming February results season for the following 12 companies:
-Expecting forecast-beating results from the renamed Breville, BRG Group ((BRG)), Computershare ((CPU)), Guzman y Gomez ((GYG)), and Tasmea ((TEA))
-Expecting a strong outlook from Lovisa Holdings ((LOV)), Megaport ((MP1)), Pinnacle Investment Management ((PNI)), ResMed ((RMD)), Superloop ((SLC)) and Universal Store Holdings ((UNI))
-Regal Partners ((RPL)) is expected to announce capital management
-Treasury Wine Estates ((TWE)) is expected to report better-than-feared financials
On the negative side, Morgans sees earnings risk for Healius ((HLS)), HealtCo Healthcare and Wellness REIT ((HCW)), IDP Education ((IEL)), Monadelphous ((MND)), Ramsay Health Care ((RHC)), Tourism Holdings Rentals ((THL)), and Ventia Services Group ((VNT)).
A soft market update might feature results from ARB Corp ((ARB)), Domino's Pizza ((DMP)), Endeavour Group ((EDV)), and Woolworths Group ((WOW)).
Other companies that might be under threat of releasing a weaker-than-expected result in February are nib Holdings ((NHF)) and PeopleIn ((PPE)).
Taking into account the local share market is trading at a notable premium to its long-term valuation multiples, Morgans prefers caution, suspecting that companies that fail to deliver on high valuations will be punished.
The broker's best tactical calls among small caps include Acrow ((ACF)), Lovisa, Megaport, Pinnacle Investment Management, Regal Partners, Superloop, Tasmea and Universal Store.
Preferred exposures on current weakness for resources stocks include BHP Group ((BHP)), Sandfire Resources ((SFR)), South32 ((S32)), Whitehaven Coal ((WHC)) and Woodside Energy ((WDS)).
Key calls for the Financial Services sector are QBE Insurance ((QBE)), Suncorp Group ((SUN)), Challenger ((CGF)), MA Financial ((MAF)) and Tyro Payments ((TYR)).
Taking all of the above, and more, into account, Morgans' key calls for February include Computershare, Guzman y Gomez, Lovisa Holdings, Megaport, Pinnacle Investment Management and Superloop.
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