Rudi’s View: Charter Hall, Droneshield, Pinnacle, WiseTech & More

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By Rudi Filapek-Vandyck, Editor

Strategists at Wilsons see the US economy slowing in H2, but without any dramas attached as long as Trump & Co don’t go crazy again on tariffs.

As far as Australian equities are concerned, one more RBA rate cut this year should provide support but valuations are already seen as “full” while there’s earnings risk on the horizon, thus Wilsons prefers a Neutral stance for now.

Portfolios are recommended to have an Overweight allocation to both local bonds and alternative assets (private credit, private equity, and real assets). International equities should be Underweighted.

The Federal Reserve is expected to deliver its next rate cut in September and is still expected to cut multiple times over the year ahead. The result should be slightly lower bond yields by this time next year.

Wilsons strategists would not be surprised if equities go through a rougher patch near term, but they remain positive on a twelve month view.

“Investors will likely be best served by a more globally diversified portfolio over the balance of 2025.”

The strategists also remain positive on the outlook for gold medium to longer term.

Wilsons’ Model Portfolio added Pinnacle Investment Management ((PNI)) in June while selling out of Mac Copper ((MAC)). The strategists have given up on the prospect of a higher bid to Harmony Gold’s $18.90 offer.

Pinnacle is seen as a compelling multi-year growth story whose share price  has failed to recover in full from the April mayhem.

Wilsons’ Focus Portfolio has large overweight allocations to ANZ Bank ((ANZ)), CSL ((CSL)), ResMed ((RMD)), and Collins Foods ((CKF)).

Other high-conviction exposures include Goodman Group ((GMG)), TechnologyOne ((TNE)), Telix Pharmaceuticals ((TLX)), WiseTech Global ((WTC)), and Xero ((XRO)).

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Stockbroker Morgans‘ strategy update for the winter period ahead has seen the bias tilt towards mid and small cap companies and on quality cyclicals, while any exposure to expensive defensives –like banks and telcos– is recommended to be reduced.

Preferred sector exposures are financials, industrials, and agriculture, but also notable laggards healthcare, resources and energy when the global macro-economic outlook brightens again.

When it comes to the local technology sector, the advice is to “buy the dips”, with Key Picks WiseTech Global ((WTC)) and Megaport ((MP1)).

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For investors seeking exposure to governments increasing their spending on defence, Bell Potter highlights three ASX-listed options:

-Droneshield ((DRO))
-Electro Optic Systems Holdings ((EOS))
-IperionX ((IPX))

For more info on the latter: https://fnarena.com/index.php/2025/06/17/us-defence-validates-iperionx-potential/

Colleagues at Bell Potter’s retail desk have nominated their favourites across large/mid/small caps:

-JB Hi-Fi ((JBH))
-Harvey Norman ((HVN))
-Universal Store Holdings ((UNI))
-Propel Funeral Partners ((PFP))

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Retail sector analysts at Citi have lined up their favourites inside the local small cap retail space (in order of preference):

-Universal Store Holdings ((UNI))
-Baby Bunting ((BBY))
-Nick Scali ((NCK))
-Temple & Webster ((TPW))
-Beacon Lighting ((BLX))
-Harvey Norman ((HVN))
-Accent Group ((AX1))
-Super Retail ((SUL))
-Premier Investments ((PMV))
-Bapcor ((BAP))
-Lovisa Holdings ((LOV))

In support of the broker’s number one pick: “We remain confident that the company can continue to deliver in the short-term, given the benefit from competitor closures is increasing.”

Elsewhere, colleagues at the local A-REITs desk have expressed their general positive view for the sector on the basis of ongoing RBA rate cutting.

Citi’s overall preference is for those in the sector that can boast strong growth potential.

No surprise thus, Goodman Group ((GMG)) remains the broker’s number one sector pick, followed by Scentre Group ((SCG)), Stockland ((SGP)), National Storage ((NSR)) and Ingenia Communities Group ((INA)).

Also in favour are diversified stocks with high beta to underlying interest rate cuts; Charter Hall ((CHC)) and GPT Group ((GPT)).

Also highlighted is Charter Hall Retail REIT ((CQR)) for a potential positive surprises into results, also supported by strong underlying fundamentals.

Peers at UBS have now nominated BWP Trust ((BWP)) as their favourite among mid-cap retail REITs in Australia.

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Gold is receiving less and less love from analysts at Citi who –bottom line– see less clouds on the horizon as that Big Bill in the US is likely to be approved and with the US administration announcing more trade deals.

Citi is toying with the idea that gold might have seen its peak for this cycle. The price of bullion is expected to vacillate between US$3,100-US$3,500/oz over the three months ahead.

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Morgan Stanley has highlighted six Conviction stock picks that each represent a compelling individual investment case underpinned by idiosyncratic drivers and the ability to deliver earnings upside, believed to be underappreciated by the market.

-WiseTech Global ((WTC))
-Charter Hall Group ((CHC))
-Suncorp Group ((SUN))
-Life360 Inc ((360))
-Generation Development Group ((GDG))
-Data#3 ((DTL))

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Morningstar has removed James Hardie ((JHX)) and APA Group ((APA)) from its selection of Global Equity Best Ideas (Conviction Buy Calls by any other name, mostly chosen because of under-valuation).

Fourteen companies listed on either side of the Tasman Sea (or both) remain selected:

-Auckland International Airport ((AIA))
-ASX Ltd ((ASX))
-Aurizon Holdings ((AZJ))
-Bapcor ((BAP))
-Dexus ((DXS))
-Domino’s Pizza Enterprises ((DMP))
-Endeavour Group ((EDV))
-Fineos Corp ((FCL))
-IDP Education ((IEL))
-IGO Ltd ((IGO))
-Ramsay Health Care ((RHC))
-SiteMinder ((SDR))
-Spark New Zealand ((SPK))
-Woodside Energy ((WDS))

Best Buys & Conviction Calls

Bell Potter’s sector preferences for the financial year ahead.

Listed Investment Companies ((LICs)
-Australian Foundation Investment Company ((AFI))
-Metrics Master Income Trust ((MXT))
-MFF Capital Investments ((MFF))

Agricultural & Fast Moving Consumer Goods (FMCG)
-Bega Cheese ((BGA))
-Rural Funds Group ((RFF))
-Elders ((ELD))

Technology
-WiseTech Global ((WTC))
-Gentrack ((GTK))
-Seek ((SEK))

Diversified Financials
-Cuscal ((CCL))
-Praemium ((PPS))
-Regal Partners ((RPL))

Real Estate
-Aspen Group ((APZ))
-Cedar Woods ((CWP))
-Region Group ((RGN))

Retail
-JB Hi-Fi ((JBH))
-Universal Store Holdings ((UNI))
-Propel Funeral Partners ((PFP))

Industrials
-LGI Ltd ((LGI))
-Environmental Group ((EGL))

Healthcare
-Telix Pharmaceuticals ((TLX))
-Neuren Pharmaceuticals ((NEU))
-Monash IVF ((MVF))

Gold
-Minerals 260 ((MI6))
-Santana Minerals ((SMI))
-Evolution Mining ((EVN))

Base Metals
-Aeris Resources ((AIS))
-Nickel Industries ((NIC))
-AIC Mines ((A1M))

Strategic Minerals & Processing Technologies
-Alpha HPA ((A4N))
-IperionX ((IPX))

Energy
-Boss Energy ((BOE))

Mining & Industrial Services
-Develop Global ((DVP))
-ALS Ltd ((ALQ))
-Duratec ((DUR))

****

Crestone’s Best Sector Ideas:

-Ampol ((ALD))
-APA Group ((APA))
-Aristocrat Leisure ((ALL))
-Beach Energy ((BPT))
-Brambles ((BXB))
-Cochlear ((COH))
-CSL ((CSL))
-Goodman Group ((GMG))
-IGO Ltd ((IGO))
-James Hardie Industries ((JHX))
-Lottery Corp ((TLC))
-Macquarie Group ((MQG))
-Metcash ((MTS))
-Monadelphous Group ((MND))
-REA Group ((REA))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-Xero ((XRO))

Crestone’s selection for sustainable income:

-Amcor ((AMC))
-Ampol ((ALD))
-ANZ Bank ((ANZ))
-APA Group ((APA))
-Atlas Arteria ((ALX))
-Beach Energy ((BPT))
-BHP Group ((BHP))
-Car Group ((CAR))
-Coles Group ((COL))
-Dalrymple Bay Infrastructure ((DBI))
-Iress ((IRE))
-Lottery Corp ((TLC))
-Macquarie Group ((MQG))
-Metcash ((MTS))
-Mirvac Group ((MGR))
-Pro Medicus ((PME))
-QBE Insurance ((QBE))
-RAM Essential Services ((REP))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-Tabcorp Holdings ((TAH))
-Telstra Group ((TLS))

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Jarden’s monthly update on Emerging Companies (i.e. smaller caps) showcases 16 stock picks in Australia; unchanged from the update in May. The following seven have been highlighted as representing the potential highest return, ranked in order of total shareholder return:

-GQG Partners ((GQG))
-Qualitas ((QAL))
-Dicker Data ((DDR))
-Universal Store Holdings ((UNI))
-EVT Ltd ((EVT))
-SiteMinder ((SDR))
-Temple & Webster ((TPW))

Apart from their order of appearance, nothing has changed to that selection. In contrast, the other ten have seen a number of changes:

-Arena REIT ((ARF))
-Genesis Energy ((GNE))
-Harvey Norman ((HVN))
-Integral Diagnostics ((IDX))
-Karoon Energy ((KAR))
-Michael Hill ((MHJ))
-Pepper Money ((PPM))
-Symal Group ((SYL))
-Vault Minerals ((VAU))

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Goldman Sachs‘ selection of local Conviction Buys currently consists of:

-Iluka Resources ((ILU))
-NextDC ((NXT))
-ResMed ((RMD))
-Worley ((WOR))

The global list also includes Unibail-Rodamco-Westfield ((URW)), with main listing in Paris but also listed on the ASX (as a leftover from the old Westfield empire), as well as Rio Tinto’s ((RIO)) London listing.

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Morgan Stanley’s Macro+ Focus List in Australia is currently made up of:

-Aristocrat Leisure ((ALL))
-ANZ Bank ((ANZ))
-Car Group ((CAR))
-Goodman Group ((GMG))
-GPT Group ((GPT))
-James Hardie Industries ((JHX))
-Orica ((ORI))
-Santos ((STO))
-Suncorp Group ((SUN))
-Xero ((XRO))

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Morgan Stanley’s Australia Macro+ Model Portfolio is currently made up of the following:

-ANZ Bank ((ANZ))
-CommBank ((CBA))
-National Australia Bank ((NAB))
-Westpac ((WBC))

-Macquarie Group ((MQG))

-Suncorp Group ((SUN))

-Goodman Group ((GMG))
-GPT Group ((GPT))
-Scentre Group ((SCG))
-Stockland ((STG))

-Aristocrat Leisure ((ALL))
-Eagers Automotive ((APE))
-CAR Group ((CAR))
-Domino’s Pizza ((DMP))
-The Lottery Corp ((TLC))
-Wesfarmers ((WES))
-WiseTech Global ((WTC))
-Xero ((XRO))

-James Hardie ((JHX))

-Amcor ((AMC))
-Cleanaway Waste Management ((CWY))
-Orica ((ORI))

-Coles Group ((COL))

-CSL ((CSL))
-ResMed ((RMD))

-AGL Energy ((AGL))
-Telstra ((TLS))
-Transurban ((TCL))

-BHP Group ((BHP))
-Newmont Corp ((NEM))
-Rio Tinto ((RIO))
-South32 ((S32))

-Santos ((STO))
-Woodside Energy ((WDS))

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Ord Minnett’s High Conviction calls (all nominations made by sector analysts on a 12 month horizon):

-Aussie Broadband ((ABB))
-Brazilian Rare Earths ((BRE))
-Bubs Australia ((BUB))
-Cuscal ((CCL))
-Qoria ((QOR))
-Regis Healthcare ((REG))
-SiteMinder ((SDR))
-Vault Minerals ((VAU))
-Waypoint REIT ((WPR))
-Zip Co ((ZIP))

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Shaw and Partners’ Large Caps Model Portfolio:

-ANZ Bank ((ANZ))
-Aristocrat Leisure ((ALL))
-BlueScope Steel ((BSL))
-Brambles ((BXB))
-Dexus ((DXS))
-Macquarie Group ((MQG))
-Newmont Corp ((NEM))
-South32 ((S32))

Shaw and Partners’ emerging companies Top Picks:

-AML3D ((AL3))
-Australian Vanadium ((AVL))
-Bannerman Energy ((BMN))
-Chrysos ((C79))
-Humm Group ((HUM))
-Metro Mining ((MMI))
-Santana Minerals ((SMI))
-Southern Cross Electrical ((SXE))

****

UBS’s Most Preferred Stocks in Australia

In Resources segment:
-BHP Group ((BHP))
-BlueScope Steel ((BSL))
-Newmont Corp ((NEM))
-Orica ((ORI))
-Origin Energy ((ORG))

Among Financials & A-REITs:
-Dexus ((DXS))
-Lifestyle Communities ((LIC))
-Mirvac Group ((MGR))
-Medibank Private ((MPL))
-QBE Insurance ((QBE))
-Steadfast Group ((SDF))

Among Industrials:
-Brambles ((BXB))
-Collins Foods ((CKF))
-Cochlear ((COH))
-Coles Group ((COL))
-NextDC ((NXT))
-REA Group ((REA))
-ResMed ((RMD))
-SGH Ltd ((SGH))
-TechnologyOne ((TNE))
-Telstra Corp ((TLS))
-Telix Pharmaceuticals ((TLX))
-WiseTech Global ((WTC))

UBS’s Least Preferred Stocks in Australia

-Aurizon Holdings ((AZJ))
-ASX Ltd ((ASX))
-Bank of Queensland ((BOQ))
-CommBank ((CBA))
-Charter Hall Group ((CHC))
-Computershare ((CPU))
-Evolution Mining ((EVN))
-Temple & Webster ((TPW))

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Wilsons’ Focus Portfolio currently contains the following:

-ANZ Bank ((ANZ))
-Aristocrat Leisure ((ALL))
-BHP Group ((BHP))
-Brambles ((BXB))
-Car Group ((CAR))
-Collins Foods ((CKF))
-CSL ((CSL))
-Evolution Mining ((EVN))
-Goodman Group ((GMG))
-HealthCo Healthcare & Wellness REIT ((HCW))
-Hub24 ((HUB))
-James Hardie ((JHX))
-Macquarie Group ((MQG))
-Northern Star Resources ((NST))
-Pinnacle Investment Managers ((PNI))
-ResMed ((RMD))
-Sandfire Resources ((SFR))
-Santos ((STO))
-South32 ((S32))
-TechnologyOne ((TNE))
-Telix Pharmaceuticals ((TLX))
-The Lottery Corp ((TLC))
-Westpac Bank ((WBC))
-WiseTech Global ((WTC))
-Woolworths Group ((WOW))
-Worley ((WOR))
-Xero ((XRO))

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Wilsons’ analysts selected the following five as Key Investment Opportunities:

-ResMed ((RMD))
-Goodman Group ((GMG))
-Xero ((XRO))
-Brambles ((BXB))
-WiseTech Global ((WTC))

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Paying subscribers have 24/7 access to my curated lists, including All-Weather Performers at: https://fnarena.com/index.php/analysis-data/all-weather-stocks/

FNArena Talks

Interview for Philip Muscatello’s Shares For Beginners about the ins and outs of All-Weathers and the portfolio over the decade past:

https://www.sharesforbeginners.com/blog/fnarena-all-weather

YouTube: https://youtu.be/m33cYbtJsDs?si=MQTAW8YgI2oNjKc4

Spotify: https://open.spotify.com/episode/43A2QQWyfGdHYgixBalJo7?si=dd99905f27554381

Apple Podcasts: https://podcasts.apple.com/au/podcast/all-weather-portfolio-rudi-filapek-vandyck-fnarena/id1451778025?i=1000715348354

Ask FNArena

With fiscal 2025 in the rear view and the August results season only weeks away, FNArena is preparing for an online live event, allowing subscribers and investors to ask questions about what to expect, individual companies, specific strategies, et cetera.

Yours truly will do his best to prepare and answer as many questions as possible. No date has been set as yet, but we’re aiming for the final week of July.

Questions can be send in beforehand via Editor@fnarena.com. More details to follow.

(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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