Evan Lucas of IG Markets is looking for a bounce this week for Telstra (TLS).
While the decline in Telstra has seen it hit an oversold level on a technical basis, Lucas says that on current updates Telstra is still on track to achieve its revenue targets in February.
This means, the “fundamentals back a buy call,” Lucas says.
“That coupled with no changes to its dividend policy under Andy Penn should see some buying over the coming few weeks ahead of half-year numbers.”
Michael McCarthy from CMS Markets likes Primary Healthcare (PRY), despite an earnings downgrade on Friday.
“While there are clearly operational issues, these may be a temporary result of bottleneck in medical practitioners. The long term demographic drives of healthcare revenues remain intact,” McCarthy says.
McCarthy likes commercial services and supplies company IPH Ltd (IPH) but not at its share price of $8, which is why the stock is on his dislike list.
“After lifting earnings estimates for 2016 by around 34% over 2015, the PE ratio is still close to 30 times, and difficult to justify,” McCarthy says.
Elio D’Amato from Lincoln Indicators likes Webjet (WEB), although the business is currently trading at a premium to the Lincoln valuation.
“WEB has provided guidance of 20% earnings growth for fiscal 2016. With all business units tracking well according to management at the recent annual general meeting,” D’Amato says.
This week, however, D’Amato does not like software and services business SMS Management & Technology (SMX).
“The company recently reported its full-year results with earnings-per-share and revenue growth numbers coming in strong,” D’Amato says.
“However, the company missed its revenue targets and the winding down of major projects will affect the outlook for the company.”
*SSR as at 19 November 2015
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.
