This week Lincoln Indicators’ Elio D’Amato says blood products and biopharmaceutical company CSL is in strong financial health, after reporting a solid FY15 result, with EPS rising 31.03% on improving margins.
The company has provided guidance for the underlying business on a constant currency basis for sales growth of 7%, which translates to a net profit after tax (NPAT) uplift of 5%.
“Recent acquisitions, further major internal investments and ongoing share buy-backs [are] expected to continue to underpin the growth profile off a consistently larger base,” D’Amato says.
Julia Lee is feeling cheesy on the back of an improving outlook for milk prices. She says this bodes well for companies like Bega Cheese (BGA).
Michael McCarthy likes ANZ. Last week, ANZ announced CEO Mike Smith would be stepping down at the end of the year, to be replaced by chief financial officer Shayne Elliott. But McCarthy likes the bank for technical reasons.
“The ANZ chart is showing signs of a reversal in trend. The ‘triple bottom’ may have technically oriented investors looking for a move to $32.50,” he says.
Julia Lee is not so optimistic about the property and building market. She doesn’t like CSR because she says the housing market is near a peak.
“It looks like it’s time to consider rotating out of building product companies,” she says.
“CSR in particular has been under pressure due to the pressures in aluminium, and combined with the pressures looking to mount in housing, CSR is looking like a stock to avoid.”
Resource-based stocks feature heavily on our ‘dislike’ list with Santos, AWE and Origin Energy amongst our selectors least favoured companies.
[1]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.
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