Rudi's View | Jun 05 2025
By Rudi Filapek-Vandyck, Editor
Morningstar has added Auckland Airport ((AIA)) to its selection of Best Ideas list for June.
Shares in the New Zealand airport have been treading water ever since a valuation re-rating was stopped in early 2016. It had been a local fund manager's favourite, but shareholders have seen dividend payouts completely evaporate for a while post covid.
Financial numbers are on the up again, but there's also a major capex burden coming up plus income from aeronautical charges is expected to drop in FY26.
Morningstar's view is the market is being too cautious and with the shares seen trading some -17% below its own fair value estimate, shares in Auckland Airport have now been added to what is essentially its curated list of high conviction recommendations.
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This month's update on stockbroker Morgans' Best Ideas has seen the removal of Maas Group ((MGH)), HomeCo Daily Needs REIT ((HDN)) and Avita Medical ((AVH)). Their memberships have been take up by James Hardie ((JHX)), Goodman Group ((GMG)), and Dexus Convenience Retail REIT ((DXC)).
For the full list of Morgans' 30 Best Ideas, prior to the latest changes, see: https://fnarena.com/index.php/2025/04/10/rudis-view-best-buys-conviction-calls-on-asx/
Also, for those who still are not certain whether AI is the trend that remains in place for longer, if not much longer, UBS has elevated NextDC ((NXT)) to its APAC Key Call list. See also Goodman Group above.
Morgans has also updated on its key stock picks in the ASX-listed technology space, where current favouritism resides with WiseTech Global ((WTC)) and Megaport ((MP1)).
Other key picks are Car Group ((CAR)) in media, Superloop ((SLC)) among telcos and Light & Wonder ((LNW)) in gaming.
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