On the back of a rally in the mining sector, Rio Tinto’s (RIO) share price has headed higher over the year. Michael McCarthy from CMC Markets likes the company this week, following a “resurgent iron ore price”.
“[RIO is] an under-held global miner, with high leverage to the underlying commodity. Tick. Tick. Tick.”
RIO Tinto (RIO)
Source: Yahoo!7
He isn’t as keen on energy company Origin (ORG) this week.
“The price rise after announcing an asset spin off is in my view a perfect exit opportunity,” he says. “This deal only helps clean up – it doesn’t fix the growth challenge.”
Origin (ORG)
Source: Yahoo!7
While the miners have rallied, the healthcare sector has been beaten up this year. Raymond Chan from Morgans believes CSL’s (CSL) recent weakness is “overdone”.
“We still expect solid EPS (earnings per share) growth in CSL,” he says.
CSL (CSL)
Source: Yahoo!7
Food company Bellamy’s (BAL), however, is on Chan’s dislikes list. He says guidance is well below consensus.
“Even after a stock price correction, the stock is still trading at FY17 19x,” he says. “Yes, there could be takeover appeal but it’s not the risk that we want to take.”
Bellamy’s (BAL)
Source: Yahoo!7
Michael Heffernan from Phillip Capital is positive on internet company Technology One (TNE).
A strong share market performer that provides internet and cloud based services to major Government and Non-Government bodies, and expects double digit profit growth this financial year,” he says. “It’s a stock that’s flown under the radar but its cloud based systems are proving a winner for both customers and investors.”
Technology One (TNE)
Source: Yahoo!7
Heffernan doesn’t like Medibank (MPL) this week, saying that while last year’s result was good, “the tone of the associated commentary and outlook were underwhelming”.
“Furthermore it is now finding the going harder in the competitive health fund arena, and its AGM comments did not allay the uncertainties,” he says.
Medibank (MPL)
Source: Yahoo!7
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
