14 hours ago
Stock Tips: Mirvac and Aussie Broadband are in the good books this week
It's no easy gig analysing share prices and company performance but somebody's got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations.
Toby Grimm – Baker Young
BUY
Mirvac (ASX:MGR)
The diversified property developer screens as attractive value, offering exposure to strong residential, recovering office and resilient retail market conditions.
NextDC (ASX:NXT)
The data centre developer's share price remains below last year's equity raising, despite having secured funding for accelerated growth as evidenced by recent contract wins.
HOLD
Santos (ASX:STO)
While XRG's indicative takeover approach at $8.89 per share likely faces stiff challenges, we believe it provides an industry validation that Santos' fair value is well above current levels.
ALS (ASX:ALQ)
The sample testing firm's surprise capital raising has paused the recent rally but does reduce debt and provide funding for acquisitions to further enhance already accelerating growth.
SELL
Treasury Wine Estates (ASX:TWE)
Amidst persistent challenging industry conditions, the unexpected departure of its long-standing chief executive signals increased near term financial and strategic risk.
Insurance Australia (ASX:IAG)
IAG has enjoyed unsustainably favorable conditions in recent years with low claims and substantial premium hikes elevating earnings and we would recommend taking profits.
Tony Paterno – Ord Minnett
BUY
Aussie Broadband (ASX:ABB)
ABB is well positioned to grow residential market share as the NBN upgrades customer speeds, given the existing skew to higher speed tiers and products in market.
Whitehaven Coal (ASX:WHC)
WHC's fundamental outlook is continuing to improve (production up / unit costs down) with healthy underlying cash flows and robust long-term growth option.
HOLD
Technology One (ASX:TNE)
TNE's 1H25 result was solid with beats. It has stepped up its guidance range for profit before tax growth. The company has a track record of delivering margins to the higher end of guidance.
Sigma Healthcare (ASX:SIG)
Chemist Warehouse's trading update highlighted continued robust operating momentum (store roll-out +19, +10.3% sales growth), as well as a step-change in margins. We move to a Hold on valuation grounds.
SELL
Hub24 (ASX:HUB)
We remain very strong supporters of the HUB business. That said, given recent share price appreciation, we believe our positive investment thesis is factored into the current valuation.
Netwealth Group (ASX:NWL)
The price-to-earnings multiple of circa 50x or more is unsustainably high given its linkage to market sentiment.
